Friday, December 02, 2016 12:51:15 PM
Charting 52-week Highs on SPY by ART HILL
The S&P 500 is the most important benchmark for the stock market and the long-term trend is clearly up. This means we are in a bull market. This weekly candlestick chart shows the 40-week EMA in red, 52-week price channels in gray and the PPO(10,40,1) in the indicator window. SPY turned bullish in March with the breakout, close above the 40-week EMA and positive PPO (green dashed lines). The ETF also recorded a 52-week high with a move above the 52-week Price Channel in mid April. The upper line marks a 52-week high, the lower line marks a 52-week low and the middle line (dashed) is the average of the two. A move above the upper line denotes a 52-week high, while a move below the lower line marks a 52-week low.
We can debate overbought readings and the validity of the breakout, but I do not think we can debate the overall trend (up). I will remain long-term bullish on the broader market as long as 208 holds on a closing basis and the PPO remains positive. At this point, I am looking to identify levels where SPY could reverse after a pullback, which everyone seems to be waiting for. Broken resistance marks the first area around 218 and the channel breakout marks the second area around 215. Perhaps a reversal will materialize between 215 and 218 if we see a pullback.
The S&P 500 is the most important benchmark for the stock market and the long-term trend is clearly up. This means we are in a bull market. This weekly candlestick chart shows the 40-week EMA in red, 52-week price channels in gray and the PPO(10,40,1) in the indicator window. SPY turned bullish in March with the breakout, close above the 40-week EMA and positive PPO (green dashed lines). The ETF also recorded a 52-week high with a move above the 52-week Price Channel in mid April. The upper line marks a 52-week high, the lower line marks a 52-week low and the middle line (dashed) is the average of the two. A move above the upper line denotes a 52-week high, while a move below the lower line marks a 52-week low.
We can debate overbought readings and the validity of the breakout, but I do not think we can debate the overall trend (up). I will remain long-term bullish on the broader market as long as 208 holds on a closing basis and the PPO remains positive. At this point, I am looking to identify levels where SPY could reverse after a pullback, which everyone seems to be waiting for. Broken resistance marks the first area around 218 and the channel breakout marks the second area around 215. Perhaps a reversal will materialize between 215 and 218 if we see a pullback.
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