Futures are currently a bit lower, testing Monday’s ramge, while price action remains more bullish than bearish. The steady drive higher has Renko charts producing white bricks while identifying the trend and eliminating the noise.
SPY Renko
This recent move higher is producing a breakout and until the bulls relinquish control and bears can produce red bricks, SPY is in an uptrend.
The price momentum oscillator in the lower panel is bullish as well, rising steadily from the March reversal lows.
SPY Daily
The daily chart shows RSI rising and above 50, while MACD is lagging. The latter is producing some bearish divergence, with a lower high. Meanwhile, price action is grinding higher and ever closer to the 161.6% Fibonacci extension taken from the June pivot lows to the June pivot highs.
To quote Brent Kochuba at Spotgamma, we agree that
“We {are} looking for small movement and mark large Combo bars at 3235 and 3220. 3250 may be the top of the range with 3200 remaining our key ZeroGamma line.”
Reminder: FOMC tomorrow and FB, AAPL, AMZN, GOOGL reporting Thursday night.
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Happy Trading,
Vinny
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