Superstock Investor

Morning Matters:

Weekly Timing Chart Of The S&P 500
by Geoff Garbacz

February 5, 2020

We are updating our look at the S&P 500 via our favorite chart of SPY through Tuesday's close.

The charts will be updated by the open.

The Weekly Displaced Moving Average (DMA) Channel (Yellow Band) sees the current price still above the channel. As such, bias remains positive from pullback.

[Image 1]

Second, the Erlanger Volume Swing (EVS) is at 9.24 from 10.61. Above 0 is good and below 0 is bad. The current action is now positive to mixed as itmoved below zero in the last week before recovering.

Third, the Erlanger Crossover Spread (EC) Spread is at -33.31 from -13.77 which moves to negative.

Last,the Erlanger Trend Direction (ETD) remains at pullback.

So what is an investor to do here? We would recommend to stay with strong stocks and start to trim the biggest winners that will see selling if any pullback begins now that we are in 2020.

Positioning in our Morning Matters Portfolio off this chart and several other indicators find cash is at 33% which is appropriate for the topping action here.

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