Update: A Caution/Danger Area for The SPY ...

By: Marty Chenard | Mon, Jul 6, 2015
Print Email

The chart below shows the Weekly SPY going back to 2008. Alan Greenspan expressed it well when he said the "best bang for the buck (on QE money) is a rising stock market" ... and so it has been. A good question to ask yourself is: What about the natural ebb and flow of economic cycles that we normally have ... what happens to them and for how long?

Today, note the pattern that the Weekly SPY chart is showing below (it was updated on the last closing day of last week). The pattern you see is called a rising wedge because it becomes narrower as the market moves higher. This pattern keeps moving up ... until it fatigues and breaks to the downside. Historically, this particular pattern has had sharp down moves when the pattern finally ended.

Note how the SPY was just below the support line last week ... this is a high risk-danger area. Please see the second posted chart below ...

Weekly SPY Wedge from 2009 Chart

This chart is simply a close up of the above chart. However, do not neglect what it has to say: The SPY is in a large trading range while it is also getting close to the rising wedge's support line. Currently, the SPY is below its rising wedge pattern.

Weekly SPY Wedge from 2012 Chart

 


 

Marty Chenard

Author: Marty Chenard

Marty Chenard
StockTiming.com
Asheville, NC 28805
Tel: 828-296-1200

Marty Chenard is an Advanced Stock Market Technical Analyst that has developed his own proprietary analytical tools and stock market models. As a result, he was out of the market two weeks before the 1987 Crash in the most recent Bear Market he faxed his Members in March 2000 telling them all to SELL. He is an advanced technical analyst and not an investment advisor, nor a securities broker.

StockTiming.com is dedicated to Stock Market Investors who want the best information on stock charts, stock market trends, stock market timing and technical analysis.

Be My Guest and Take Advantage of Our Free Membership ... Get a Free Membership to StockTiming.com ... Youll receive important daily messages before the market opens and direct links to todays important web pages. Information and messages that are often not posted on our website. There is no obligation or expectation on our part ... it is just our way of proving our accuracy and timing expertise to you. Please click here for your Free Membership.

Copyright © 2006-2017 Marty Chenard

All Images, XHTML Renderings, and Source Code Copyright © Safehaven.com