Volatile market swings continued last week. The midweek rally in $SPY was bookended by selling pressure as GoNoGo Trend conditions (daily data) for major US Equity indices flirted with neutral amber “GoFish” bars.
GoNoGo Oscillator (lower panel) is riding the zero line on heavy volume - this objective level of neutrality should provide support in a healthy uptrend. Breaking down below zero signifies heavy selling momentum. Logically, that is not a sustainable condition for an uptrend.
GoNoGo Squeeze is climbing to a max grid (amber visual in lower panel) - this illustrates the knife fight between buyers and sellers right now - heavy volume, choppy rangebound price action, and no directional momentum. Other familiar volatility-based indicators like Keltner Bands, Bollinger Bands, etc... show that following periods of contracted volatility, price action can respond like a coiled spring with sharp moves in the direction of the break.
This is a critical juncture for $SPY. The volatility squeeze will need to break out to the upside if the “Go” trend is going to continue.
SPY
GoNoGo Oscillator (lower panel) is riding the zero line on heavy volume - this objective level of neutrality should provide support in a healthy uptrend. Breaking down below zero signifies heavy selling momentum. Logically, that is not a sustainable condition for an uptrend.
GoNoGo Squeeze is climbing to a max grid (amber visual in lower panel) - this illustrates the knife fight between buyers and sellers right now - heavy volume, choppy rangebound price action, and no directional momentum. Other familiar volatility-based indicators like Keltner Bands, Bollinger Bands, etc... show that following periods of contracted volatility, price action can respond like a coiled spring with sharp moves in the direction of the break.
This is a critical juncture for $SPY. The volatility squeeze will need to break out to the upside if the “Go” trend is going to continue.
SPY