SPY – SPDR S&P 500 ETF
Context Technical Analysis
Since mid-October SPY is moving above its 10- 20- and 50-day exponential moving averages.
The ETF is moving in a bullish channel between its 10-day exponential moving average and the upper Bollinger Band.
In addition, SPY’s 20- and 50-day exponential moving averages follow below the 10-day exponential moving average, a sign of a strong uptrend
Since mid-October MACD is moving in bullish territory and above its signal line.
Only in one occasion did MACD move below its signal line, as a result of a temporary momentum weakness, but it has already turned up and crossed over its signal line.
As SPY is the benchmark we use for measuring Relative Strength, SPY’s Relative Strength is by definition i.
The general MSI is 76.9 and going down
Higher Time Frame
SPY’s weekly chart is bullish because:
SPY moves between its 10-week moving average and its rising upper Bollinger Band. What is more, in the last four weeks SPY moves on the upper Bollinger Band, a sign of strong bullish trend.
The MACD is in positive territory and above its signal line
We can buy SPY when price goes above 316
Suggested Stop Loss
Sell SPY when price falls below 310