Friday, March 31, 2017 12:33:33 PM
SPY Remains in Corrective Mode BY ART HILL
The S&P 500 SPDR (SPY) is used as my benchmark for the stock market. I am also working under the assumption that most indexes, sectors, industry groups and stocks will eventually follow the S&P 500. In any case, SPY surged to the 236 area this week, but remains within a clearly defined decline since early March. This four-week correction could be a bull flag and a breakout would signal a continuation of the January-February advance. As noted above, I do not think breadth was strong enough this week to suggest a sustainable breakout. Thus, I think playing upside breakouts could be dangerous with SPY still up around 15% from its early November low. Disclaimer: Always be careful when I begin a sentence with "I think" because thinking sometimes gets me in trouble (wrong).
The S&P 500 SPDR (SPY) is used as my benchmark for the stock market. I am also working under the assumption that most indexes, sectors, industry groups and stocks will eventually follow the S&P 500. In any case, SPY surged to the 236 area this week, but remains within a clearly defined decline since early March. This four-week correction could be a bull flag and a breakout would signal a continuation of the January-February advance. As noted above, I do not think breadth was strong enough this week to suggest a sustainable breakout. Thus, I think playing upside breakouts could be dangerous with SPY still up around 15% from its early November low. Disclaimer: Always be careful when I begin a sentence with "I think" because thinking sometimes gets me in trouble (wrong).
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
