S&P 500 ETF ($SPY): 10 Chart Insights For Traders

Steve Burns

The S&P 500 closed last week at an all-time closing high. And as the new week starts, a majority of the major stock market indices are trading at or near all-time highs.

Let’s review the chart…

10 fast facts about the SPDR S&P 500 (NYSEARCA:SPY):

1.  There is nothing more bullish than a price trading at an all time high.

2.  SPY price remains in an uptrend and above all moving averages.

3.  The 10 day / 50 day crossover is a bullish signal.

4.  A 65.77 RSI is near overbought and could be signaling more price building in this range before more of an uptrend.

5.  The volatility has dropped and price is now in a very tight trading range. (ATR)

6.  The MACD remains under a bullish crossover.

7.  A VIX at 10.57 allows traders to buy very cheap SPY put options as insurance for long term holdings. This can lead to little selling as a cheap hedge replaces a stop loss.

8.  The market is trading in this range with low volume.

9.  Too many prognosticators calling for a market crash for too long when this market will barely even pull back.

10.  The money remains in buying any small pullbacks in price.

 

SPDR S&P 500 Chart – $SPY

 

Thanks for reading.

 

Twitter: @SJosephBurns

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 Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

 

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