The 60min SPY chart below shows that the 13EMA remains above the 34EMA so SPY, and therefore $SPX, remains a ‘buy’ or a ‘hold’ for now. I feel it’s legitimate to redraw the trend line as long as the 13EMA stays above the 34EMA for SPY or any other stock, ETF, etc. The uncertainty early in the session caused the 10,7,7 Sto to have a bearish cross and so this was a warning but by the end of the day SPY pushed up and closed green, and that’s all that matters for now.
Chart courtesy of FreeStockCharts.com
The daily chart of $SPX showing that it is now just a few points away from tagging or breaking the falling trend line. Should be a piece of cake, right? Yeah, well maybe. But since $SPX has banged into that falling trend line about 14 times over the past few months and failed to break above it then you just have to wonder if this is the time.
Interesting that today’s candle is a Hanging Man and that could be a reversal candle. Confirmation that the candle is truly a reversal candle would come tomorrow or Friday with a close below today’s low of 1229.51, otherwise it’s just a candle.
The bottom line is that if the $SPX is ready to rumble then some imaginary line on a chart isn’t going to stop it from going higher and breaking above this imaginary barrier and this should easily happen this week and really should happen tomorrow, IMHO. If $SPX takes too long then the enthusiasm will wane and selling will take over again.
While the two lines drawn on the chart clearly outline a symmetrical triangle, I still consider the top line to exert all the authority to date so that is why I am kinda’ ignoring this pattern in the daily, though the weekly is another story.