• 678 days Will The ECB Continue To Hike Rates?
  • 678 days Forbes: Aramco Remains Largest Company In The Middle East
  • 680 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,080 days Could Crypto Overtake Traditional Investment?
  • 1,085 days Americans Still Quitting Jobs At Record Pace
  • 1,087 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,090 days Is The Dollar Too Strong?
  • 1,090 days Big Tech Disappoints Investors on Earnings Calls
  • 1,091 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,093 days China Is Quietly Trying To Distance Itself From Russia
  • 1,093 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,097 days Crypto Investors Won Big In 2021
  • 1,097 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,098 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,100 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,101 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,104 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,105 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,105 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,107 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Mike Paulenoff

Mike Paulenoff

Mike Paulenoff is author of the MPTrader.com, a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies,…

Contact Author

  1. Home
  2. Markets
  3. Other

Wednesday's Action Pivotal in S and P

There were plenty of cross-currents (otherwise known as "noise") in Tuesday's trading. Although I am not impressed with the day's action, no significant damage was inflicted on the uptrend, while the relatively strong final hour of trading argued for additional strength Wednesday morning.

If such strength materializes, the bulls may be back in business with power. With that in mind, have a look at my final update for today's session, which reviews a particular perspective of the SPY's.

Last Thursday's decline in the S&P 500 and its SPY exchange-traded fund failed to break below the 9 and 20 adaptive moving averages (AMAs), and in fact appears to have provided another support plateau within the still powerful and intact upmove off of the March 24 low at 136.75 in the SPY.

However, let's notice that the moving averages are within about 20 cents of one another, which leaves their position vulnerable to a price breakdown in the absence of upside acceleration almost immediately.

Thus far, the Friday-Tuesday rally appears to me to be a bit sluggish, given the price and moving average juxtaposition, which is why I am placing a lot of emphasis on Wednesday's action. A strong up-day likely will motor the SPY's to new highs (above 153.50) on the way towards my next optimal target at 160.

Conversely, inability of the SPY to put more distance between price and the moving averages will argue for another loop to the downside that tests and likely breaks last Thursday's low at 150.74 and then likely a break of the moving averages as well. Such a scenario would be very negative near-term.

 

Back to homepage

Leave a comment

Leave a comment