Time to Go Long SPX ????
1) SPY ETF broke out of 203.7 The Formidable support turned resistance .
2) SPY also broke out of a Downward Sloping Trendline & is above 200 MA.
3) OBV also confirms SPY Breakout ie Breaks out of It's Trendline & Horizontal Resistance. Therefore Volume supports the Rally ! But still below OBV 200 MA.
4) True Strength Index Crossover above...
All the Volume based Indicators are showing Bullish Divergence with Price, meaning accumulation by Smart Money.
Gold Has been in a Consolidation for more than a year. Divergence during this phase is a strong signal of Smart Money Buying !
TO Confirm this setup GOLD needs to breakout of the downward Sloping trend-line.
Then a New Bull Rally Can Start !
SPY is in a Bearish Megaphone Pattern , with all the Key Market Breadth & VOlume Indicators showing a negative Divergence with price. I will go short on a support breakout, aiming for the lower trend line of the Megaphone pattern. A strong weekly close above the current Trendline of the Pattern would negate the Trade ! I'm Bearish for now.
These Indicators are...
This Up Trend Pitchfork Channel has been holding since October of 2011, ie since the last 3 years & never been broken. The Fib Levels shown inside the channel have been acting as support & resistance & has proved it's significance.
Until SPY breaks this channel decisively to the downside , The Bull trend is most likely to continue . As evident , all the negative...
S&P 500, Next Target on the downside is 1850, This level witnessed a market top in January 2014. Incidentally The 4th Monthly Pivot Support also is at 1850 overlapping the support level .
This means 1850 is a very strong level for the S&P 500, & it must stop it's decline right here, if the Bull market is set to continue, Breaking this level decisively will trigger...