Superstock Investor

Morning Matters:

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

October 7, 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 in the channel. As such, bias is neutral with SPY remaining in the channel.

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Second, the Erlanger Volume Swing (EVS) is at -7.24 from -12.87 . Above 0 is good and below 0 is bad. The current action is now negative but did improve a bit.

Third, the Erlanger Crossover Spread (EC) Spread is negative at -51.96 from -92.75.

Last,the Erlanger Trend Direction (ETD) moves from downtrend to rally mode.

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.

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