September 4, 2019

I Spy SPY Going High

Yes, you read that correctly. I believe the SPY is poised to finally break out here. The key hurdle has been the 50-day SMA. A simple sequence is what I am looking for. I want to close ABOVE the 50 SMA on the daily chart and open ABOVE the 50 SMA. Then I would want to see a rejection or reaction at the indicator. Basically showcasing that previous resistance is now acting as support. IF we get this maneuver to take place, we could see a strong move higher. Now it is VERY difficult to try and time the markets based on reaction at price with all of the tweets flying around. That being said, it will be a strong indication from a chart/technical standpoint I can offer. Traditionally, this type of reaction has historically been very bullish. While I do not think it will lead us directly to all-time highs, I think it could put the markets on the road to those levels. Stay tuned, this could all take place this week.

 

Follow me on Twitter: @DiscipleOfTrend

about the author:

Charles Moon

Charles Moon is a technical "whiz kid" whose experience lies in scalp/swing trading. A patient educator, Charles excels at coaching/mentoring and can make complex concepts simple. Prior to joining the ranks of Prosper Trading Academy, Charles was a proprietary equities trader with Great Point Capital LLC. Coming from a retail trading background, his experience can help those with no experience trading to seasoned veterans.

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