Monday, August 24, 2009
The SPYs weekly chart is still very bullish. The MACD and RSI are still rising. The 10 and 20 week EMAs are increasing. The 10 week EMA has crossed over the 50 week EMA and the 20 is approaching that level. Finally, prices are above all the EMAs which will help to pull the EMAs higher.
The daily chart is also showing bullish tendencies. First the price/EMA relationship is bullish. Prices are above the EMAs, all the EMAs are moving higher and the shorter EMAs are above the longer EMAs. In addition, the MACD is about to give a buy signal and prices have recently moved through key upside risistance levels.
Also consider the following personal observation. Over the last few months there have been two times when the technicals lined up for a bearish move. Both moves failed. That does not mean my analysis was perfect by any stretch of the imagination. But I also wasn't the only one making the call or seeing things that was. The point is this is a market that wants to move higher. And it is on a regular basis. That is extraordinary.