TRADING DP

[TREND1]

3/29 Ultra-Short-Term Indicators: No climactic readings. I've annotated vertical lines where we saw major climactic moves on the CVI and Participation Index. These indicators will no longer be updated as of Monday. I think the Net A-D and Volume histograms will be a suitable substitute as they do seem to pick up on the larger spikes. The VIX is highlighted today because it is nearing its upper Bollinger Band. An upside penetration typically results in a pullback the next day or two. I'll be keeping an eye on it and I'll alert you if it does.


Short-Term Indicators: I like these indicators right now. They are rising nicely and have set up positive divergences with price bottoms. They can accommodate plenty of upside price movement before getting overbought


Conclusion: Price on the SPY is about to reach important overhead resistance within the current declining trend channel. Short-term indicators suggest a breakout. The PMO is decelerating, but hasn't gotten on board just yet. I like seeing intermediate-term indicators turning up in conjunction with positive short-term indicators. I think the market has some more upside potential despite the declining trend channel.