SPY Chart 4/26

I am sure for many traders it has been somewhat frustrating to see the markets do a lot but go nowhere over the last 4 weeks.  However that is usually how these consolidations, pullbacks, or what ever you want to call them take place. 

It's the market testing, prodding in many ways it is price discovery between buyers in sellers.  When it gets this way at least in my view since I want a market rising generally, or falling, I stay out of the way.  I usually have positions that I have initiated that are in the money stay, and get out of bad trades as the market flip flops.

The SPY chart today has done something it has not done in two weeks made a new high.  After the price channel that developed during that time today was a solid day a break out day.  The price action was good and news supported what price was doing.



What is also noticeable is the MACD signal lines and the histogram show the trend is shifting from a bearish/neutral down trend (short term) to a break out opportunity.  If price action is supported tomorrow with another solid up day the SPY will be ready to resume its bullish march up.

f you find this information helpful you can subscribe to our Weekly Video Newsletter that goes in more depth and detail.  Click here for more details.

Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives