Superstock Investor

Morning Matters:

Weekly Chart of the S&P 500 Via SPY
by Geoff Garbacz

September 9, 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 above the channel. As such, bias is positive with a breakout above the channel. The last change was at the end of April as it moved above its DMA Channel from below the channel.

[Image 1]

Second, the Erlanger Volume Swing (EVS) is at -9.98 from 39.23. Above 0 is good and below 0 is bad. The current action is now negative.

Third, the Erlanger Crossover Spread (EC) Spread is now negative at -10.26 from 19.37.

Last,the Erlanger Trend Direction (ETD) moves from uptrend to pullback.

class="article">So what is an investor to do here? We would recommend to sell the biggest winners that are starting to pullback.

Positioning in our Morning Matters Portfolio off this chart and several other indicators moved to 100% cash on February 28th (see Flash Alert #446). We have started adding new buys and are 33% invested.

Morning Matters Archives