SPY Reversal is Building – Show Me The Money
When we wait for SPY to reverse like this morning is indicating, we change to “Show Me The Money Status” as the preceding trend is still bullish. After 17 days of crazy buying, driven mostly by fund managers, we had our first “bearish trending” day. A leg down is possible if earnings cannot capture the attention of investors.
SPY 60 Minute Reversal
The last hour of Tuesday trading saw shorts covering after a massive (-5) point drop intraday for the SPY. S&P 500 futures were off by more than 50 (+/-) handles as well. News ALGOs helped the SPY close with a bullish candle just below the 20ma. Morning session highs had price action hovering above the 20ma (264.20 +/-). The breakout zone at 259.19 (+/-) is short-term support, for now, coincident with a 23.6% Fibonacci (DEC26 low to Friday pivot high).
TICK needs to turn back up if you are bullish today.
This morning Futures are currently green (2642.38 +/-) pointing to a reversal, as AMTD, IBM, UTX, CMCSA, ZION, and PG report positive earnings flow. All of these stocks are higher in early trading, as we start one of the busiest weeks of the current earnings cycle. KMB and IBKR are a bit lower post-EPS. LRCX, XLNX, URI, LVS, TXN and CP report tonight after the bell.
SPY Weekly – Bullish Momentum
We try to steer clear of predictions when we consider potential price action. That said, bullish momentum is present in MACD as histogram nears the zero line. A bullish crossover is likely if nothing changes. Resistance ovehead at 270 (+/-).
All things considered, earnings could help propel the index ETF higher, especially if Congress acts to put an end to the current government shutdown. Politics and trade policy are the impediments. Sales and earnings are good.
Join us today for our LIVESTREAM broadcast, as we trade new positions from the watchlist and discuss intraday price action. Watch, listen and trade from 9:20 AM to 4:15 PM Monday through Friday.
Happy Trading,
Vinny
Want to become a member? Check details here:
Disclaimer: Do your Own Research
Our content is intended to be used and must be used for informational purposes only. It is very important to do your own analysis before making any investment based on your own personal circumstances. You should take independent financial advice from a professional investment advisor in connection with, or independently research and verify, any information that you find on our Website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Trades and or positions listed and taken from the watchlist are my own and should not be considered “advise” to enter any particular position or asset.
Investment Warnings
We would like to draw your attention to the following important investment warnings. The value of shares and investments and the income derived from them can go down as well as up; Investors may not get back the amount they invested – losing one’s shirt is a real risk; past performance is not a guide to future performance.
Live Sessions
Live broadcasts are educational in their content. Proper risk management is considered on every trade or asset mentioned.
*** Stocks highlighted are for information purposes only and should not be considered as advice to purchase or to sell mentioned securities.
As always, the use of technical and fundamental analysis is encouraged in order to fine tune entry and exit points to average seasonal trends.
These mentions are stocks that we may or may not decide to trade as outlined in the watchlist. Always use a stop.