Today the S&P 500 Index has re-established a long term Upward trend. It has crossed above a trend momentum measure of, at or above, a 10% annualized rate of growth over a 200 day ma. Additionally today, it is trading above last weeks high.
Which do you like? The 10 year US Treasury Note today is yielding 2.13%, and many around the world are 0%.
So we’ll see how the day and the week close.
Trend following uses price action, and ignores news, tweets, FaceBook, hot tips, stock and economics “fundamentals”, and bubblevision (television).
the index is trying to rally
To begin to re-establish a long term Upward trend, we want to see it overcome the S/R (Support and resistance price level) of the High of last week – $2,841. This will help to show us that The Fed tweet is more than a short covering rally. Currently the Index is trading below a 10% annualized rate of growth over a 200 day ma.
Stock chart of the S&P 500 index
Trend following The Nasdaq 100 Index this week, looking at the weeklies (lookback), it is breaking below the weekly Upward breakout (gap up) from back in March.
stock chart of the Nasdaq 100 Index
continuing the downward trend
As noted in a previous post, the $2,800 area is a major S/R (Support and resistance price reversal level). Today, intraday, looking at the weekly lookbacks, the Index has ‘elected’ this bearish reversal.
S&P 500 Index stock chart
The long term Bullish Trend stopped on May 8th. The price dropped under the 200 day ma of 10% annualized growth rate.
the market sell off continues
Trend following, no predictions, no forecasts, The S&P 500 Index (SPX), trading at $2,809, is approaching today a major Price Reversal today. Looking at the Weeklies, there is a major Bearish Price Reversal at $2,801, as shown on the stock chart. The Index traded under a 10% annualized rate of growth over 200 days ma, on May 7th.
So, we’ll see how the week closes.
The stock market going sideways
Trading at $2,872 today, we can see here very clearly The S&P 500 Index is range bound between S/R (Support and Resistance Price Levels) of $2,892 above, and $2,800 below. So nothing really is happening until it elects one of those price reversals.
stock chart of The S&P 500 Index at $2,892
Trend following the Consumer Staples Select Sector Index $IXR $XLP $NEED .. another in a series of routine Weekly Breakouts. The Index is trading at or in excess of a 15% annualized growth rate over a 200 day ma.
stock chart of the Consumer Staples Select Sector Index