SPY Trends And Influencers
Dragonfly Capital | Mar 03, 2014 01:41PM ET
Last month in this space my Monthly Macro Review/Preview had the monthly outlook heading into February suggesting the equity markets may see some consolidation or downside. Gold (
The SPY broke the consolidation to the upside, closing near the high in a bullish engulfing candle. The move continues to show price attracting to the Upper Median Line of the Andrew’s Pitchfork. There is the 127% extension of the previous down move at 189.12 just above and the 138.2% extension at 199.88 above that. The RSI is bullish and strong, just over 70 with a MACD that continues to rise. Both support more upward price action. There is no resistance higher and support comes lower at 175 and 169.25 before 158. Continued Upward Price Action.
The monthly outlook heading into March suggests the equity markets have broke their consolidation to the upside and want more. Gold has committed to consolidation joining Copper. Crude Oil looks to continue to drift higher and Natural Gas is also biased to the upside, but with some caution now. US Treasuries look to continue their bounce in the recent consolidation while the US Dollar Index drifts sideways with a downward bias. The Shanghai Composite looks weak in its downtrend and Emerging Markets look to continue their broad consolidation in the lower part of a channel while the German DAX wants more upside. Volatility looks to remain low, helping US Equities. The Equity Index ETF’s SPY, IWM and QQQ look ready for a move higher following the short consolidation. Use this information to understand the long term trends in Equities and their influencers as you prepare for the coming months.
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