Trend following update on the S&P 500 Index

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).

S&P 500 Index trend following update

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

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S&P 500 Index–trend following update

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

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The long term Bullish Trend stopped on May 8th. The price dropped under the 200 day ma of 10% annualized growth rate.

S&P 500 Index–looking at a Major Bearish Reversal

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.

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S&P 500 Index–range bound

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

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Consumer Staples Select Sector Index

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

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