Chart courtesy of StockCharts.com
- $SPY price continues under all key moving averages except the 5 day EMA and 10 day EMA.
- $SPY broke out of its recent 10 day trading range Friday to close at $252.39.
- $SPY closed under the 10 day EMA Thursday and then reversed closing back over the 10 day EMA Friday.
- We are still in the trading range from December 19th.
- The trading range continues to expand as measured by the average true range (ATR) at 6.40. High volatility is rarely bullish, it is usually a reflection of weak hands and a lack of conviction for a trend. Going too far too fast usually does not set up a good entry as much of the potential reward has already played out in one day.
- The volume last week was equal on both up and down days.
- The MACD held its bullish crossover.
- With RSI at 46.99 the 50 RSI will be the next potential resistance zone. A close over the 50 RSI could confirm a new swing higher.
- $VIX dropped to 21.38 on Friday under the 10 day and 30 day EMA showing a reduction in fear on Friday. $VIX has been in a down trend for seven trading days in a row showing a drop in fear as the trading range continues to expand.
- The rally Friday was primarily due to the outstanding jobs report. The past two rallies after the mid terms and supposed China Tariff resolution failed, we will see if this is the real one or another head fake.