SPY: The Next Big Move
Kay Kim | May 24, 2017 11:06PM ET
General rule is pretty simple in a raging bull market like we are in today
- As long as the price stays above the "Rising 20EMA (setting on "high")," minor-term sentiment is bullish
- As long as the price stays above the "Rising 50EMA (setting on "low")," intermediate-term sentiment is bullish
- Only respect price, and only let price guide you
- Ignore all news that reflects stock market
- Stop listening to lunatics who have been calling for the "crash" since Feb 2016
- From 2013 through 2015, every pullback to "Rising 20EMA (weekly)" gave you buy-the-dip opportunity (see purple circles).
- Late March of this year was a great level to buy-the-dip as it retested "Rising 20EMA (weekly)," and I did exactly that as I've explained on this article .
- Once it fails the "Rising 20EMA," next logical support always have been "Rising 50EMA (weekly)"
- November 2016 was a great level to buy-the-dip as it retested "Rising 50EMA", and I did exactly that-I bought the dip in early November 2016.
- Long-term uptrend is strong, healthy and is valid: I wouldn't fight it.
I am targeting 247 & 250 as my next intermediate-term targets on SPY (NYSE:SPY).
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