Now on to the stock market. The SPY (Spdr S&P 500) had a rough week given all the events happening around the world (Japan, Middle East to name a few). Although the SPY does look vulnerable here for a further down move, I am seeing some “bottoming” taking place in some of the more common indicators. Take a look:

As I point out with the left-facing RED arrows, the MACD (Moving Average Convergence Divergence) has been falling for a few weeks and is now slowing its descent. The Stochastics have bottomed already and spent the week churning. With that said, it is concerning to see the 20 day moving average rolling over, and headed down to cross through the 50 day moving average – this would be a bearish cross.

The RSI (Relative Strength Index) has a reading of 34.95 which is just above what is considered oversold. Price did makes it way back inside the lower BB (Bollinger Band) but did print a bearish candle for the day on Friday. The volume for the day notes continued selling pressure.

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