SPY looking to top out
I have been watching SPY for a bit trying to figure what it is doing. A lot of money from retail has started pouring in to various stocks. We see that with the pumping of Carvana, Bed Bath, AMC etc.
The McLellan Oscillator can be an interesting and sometimes confusing tool for seeing how the breadth of the rally is.
To simply how it works It essentially is tracking the MACD crosses of all the stocks in the index, in this case a ton of them have had that Macd cross this week.
What we want to watch for if we are bearish is that the price of the index does not increase after this has occurred (false positives on MACD), We then want to see that the number of MACD crosses has decreased and possibly started to go the other way, majority being negative crosses.
We may even get a ping on stupid willy if it matches with what I have circled in orange, if we are overbought while the majority of stocks in the index have a negative MACD cross I think we will start to decline down to 375.
Overall I think this recovery from the October lows is looking like it may be a large rounding top.
Of course if we push past resistance and break out of the white rounding top I have drawn then this idea is wrong.
A lot to watch next week, hope you enjoyed the artwork.
The McLellan Oscillator can be an interesting and sometimes confusing tool for seeing how the breadth of the rally is.
To simply how it works It essentially is tracking the MACD crosses of all the stocks in the index, in this case a ton of them have had that Macd cross this week.
What we want to watch for if we are bearish is that the price of the index does not increase after this has occurred (false positives on MACD), We then want to see that the number of MACD crosses has decreased and possibly started to go the other way, majority being negative crosses.
We may even get a ping on stupid willy if it matches with what I have circled in orange, if we are overbought while the majority of stocks in the index have a negative MACD cross I think we will start to decline down to 375.
Overall I think this recovery from the October lows is looking like it may be a large rounding top.
Of course if we push past resistance and break out of the white rounding top I have drawn then this idea is wrong.
A lot to watch next week, hope you enjoyed the artwork.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.