If You Have Not Been Bullish Open Your Eyes
- Posted by Greg Harmon
- on October 5th, 2012
Traders and Investors look at a lot of indicators, statistics, and econometrics when they are trying to determine what will happen in the market. But the simplest indicator, price action, has been telling you for 4 months to be bullish. The chart of the S&P 500 SPDR, $SPY, below has been in an uptrending channel since confirming the June 4 Hammer higher as the first indicator. Yes it has been meeting resistance lower in that channel as it has risen, but the resistance has been rising
S&P 500 SPDR, $SPY
steeply. All of the Simple Moving Averages (SMA) are rising. The Relative Strength Index (RSI) is rising and in bullish territory. Finally the Moving Average Convergence Divergence indicator (MACD) is moving towards a positive cross. If you need more convincing than that, then I suggest you stop watching television and reading the financial newspapers. No reason to even have one though about a move lower until a break of the channel. Maybe today, maybe not.
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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