SPY: Higher Prices Says This Technical Pattern
Kay Kim | May 05, 2018 08:00PM ET
This chart below is a SPY ETF) 65mins Chart with MACD indicator at the bottom.
This is what the technicians call "Bullish Divergence," and it happens when the price prints lower low while the MACD indicator prints higher low implaying that sellers are exhausted after that last low and buyers are taking advantage to bring the price back up.
You can see that in early April, SPY rallied for about few weeks after this pattern - and so, maybe, we may see few weeks or more (if the price gets well-above 270 and stays above) in the coming weeks.
I explain more in the video below, and also covered IWM, QQQ AAPL TWTR INTC CSCO SNAP SHAK.
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