• 805 days Will The ECB Continue To Hike Rates?
  • 806 days Forbes: Aramco Remains Largest Company In The Middle East
  • 807 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,207 days Could Crypto Overtake Traditional Investment?
  • 1,212 days Americans Still Quitting Jobs At Record Pace
  • 1,214 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,217 days Is The Dollar Too Strong?
  • 1,217 days Big Tech Disappoints Investors on Earnings Calls
  • 1,218 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,220 days China Is Quietly Trying To Distance Itself From Russia
  • 1,220 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,224 days Crypto Investors Won Big In 2021
  • 1,224 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,225 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,227 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,228 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,231 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,232 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,232 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,234 days Are NFTs About To Take Over Gaming?
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