Superstock Investor

Morning Matters:

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

April 15, 2020

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

The Weekly Displaced Moving Average (DMA) Channel (Yellow Band) sees the current price below the channel. As such, bias is negative.

[Image 1]

Second, the Erlanger Volume Swing (EVS) is at -1.66 from -27.25. Above 0 is good and below 0 is bad. The current action is now negative.

Third, the Erlanger Crossover Spread (EC) Spread is now positive at 34.49 from 7.77.

Last,the Erlanger Trend Direction (ETD) stays in rally mode.

So what is an investor to do here? We would recommend to be defensive and do not nibble yet.

Positioning in our Morning Matters Portfolio off this chart and several other indicators moved to 100% cash on February 28th (see Flash Alert #446.

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