AMEX:SPY SPDR S&P 500 ETF
This is a four part series I am writing to help you identify potential weakness in your charts, and, hopefully, save you heartache and headache. This is an update of an S&P 500 pattern (using SPY as a proxy) that I published two weeks ago. Please note two key weaknesses on this chart. After the C to D impulse leg the price action in the S&P is lower, as it usually will be after a pattern. At this point I did a of impulse leg D to A. If the S&P sells down, the first key area to look for is usually Fib .618. The second key to this chart is the in the background. If you look left to the mid-point of the chart, the cloud was higher. The lower cloud movement and pattern are both warnings of weakness ahead in the S&P . HOWEVER: Not all march to the same drummer. Part 2 of this series is next, the chart of Altria Group (MO), the parent company of Phillip Morris (PM). Phillip Morris is an S&P 500 component. The chart for MO has a , but, I will show you the breakout to new highs in MO, and how you could have anticipated the move.Yours for better trading, Don.