SPY Chart Analysis

The SPY chart displayed is showing bearish action. The 20 day ATR stop has been breached (blue dots) which would suggest that the intermediate trend is taking a halt. I wouldn’t start shorting for the long term just yet, but there is a potential for a few more down days as the market tries to find support just above the 200 EMA area. For now this just seems like a down cycle in the long-term bull market we have been having. Moving averages are still bullish for the long term. 50ema still above the 200ema. However, if the 10 Ema crosses down below the 50 ema, a major correction could come into play. Summer has had a tendency to be a slow periods as trends are not likely to develop during this season. As the saying goes “Sell in May go away”
Good luck. (Click to enlarge)

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