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Spylong

The Weekly 50 EMA on SPY is the Tell TaleOther than the messiness of 2015 and 2016 the 50 EMA on the weekly has been a clear indicator of market support. While people will say that we've been in a bull market for 8-9 years they often forget that protracted sideways move with significant breaches of the weekly MAs. Well we're bouncing off the 50 again or at least it seems but will it hold. I think its safe to say that if we get a weekly close below the 50, it would be wise to be in some cash so that one has money on hand to leg back in at major support levels. On the daily chart, the 200 is holding up price and we've bounced (obviously) off of that average as well. Closing below the weekly 50 and the daily 200 will likely indicate a larger pullback but the present pattern, and I'll post a daily too looks correctional. There's a large triangle pattern forming which obviously can break either way. However using the triangle pattern in conjunction with the moving averages lends significant weight. If we can break above 20 and 50 on a daily chart, say get above 271-272 and close up there, then market is likely to make another leg higher assuming it makes a new high. If not, and we fail the averages, get into some cash as simply wait.
AMEX:SPY
by VelvetHammersTrading