The S&P 500 closed last week at an all-time closing high. And as the new week starts, a majority of the major stock market indices are trading at or near all-time highs.
Let’s review the chart…
10 fast facts about the SPDR S&P 500 (NYSEARCA:SPY):
1. There is nothing more bullish than a price trading at an all time high.
2. SPY price remains in an uptrend and above all moving averages.
3. The 10 day / 50 day crossover is a bullish signal.
4. A 65.77 RSI is near overbought and could be signaling more price building in this range before more of an uptrend.
5. The volatility has dropped and price is now in a very tight trading range. (ATR)
6. The MACD remains under a bullish crossover.
7. A VIX at 10.57 allows traders to buy very cheap SPY put options as insurance for long term holdings. This can lead to little selling as a cheap hedge replaces a stop loss.
8. The market is trading in this range with low volume.
9. Too many prognosticators calling for a market crash for too long when this market will barely even pull back.
10. The money remains in buying any small pullbacks in price.
SPDR S&P 500 Chart – $SPY
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Twitter: @SJosephBurns
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