SPY Trends and Influencers: Monthly Edition September into October 2013

A monthly excerpt from the Premium subscriber version covering all 13 markets.

Last month in this space my Monthly Macro Review/Preview had the monthly outlook suggesting the upside for Gold ($GLD) would continue while Copper ($JJC) consolidated. The uptrend in Crude Oil ($USO) looked to continue while Natural Gas ($UNG) tried to reverse higher off of support. The US Dollar Index ($UUP) was still consolidating while US Treasuries ($TLT) might try to reverse the downtrend. The Shanghai Composite ($SSEC) looked to continue to move lower as Emerging Markets ($EEM) continued to bore moving sideways and the German DAX ($DAX) looked higher, but might continue to consolidate first. Volatility ($VIX) was expanding but remained at low levels supporting upside in the equity markets. The Equity Index ETF’s $SPY, $IWM and $QQQ were all set up to continue higher in the coming months from their price action. As noted on the individual charts there was room for some short term downside without breaking the upward bias, with the SPY looking the weakest. How does an additional month impact the longer term picture? Let’s look at some charts.

As always you can see details of individual charts and more on my StockTwits feed and on chartly.)

SPY, $SPY
spy

The SPY held the mid line between the Upper Median Line and the Median Line of the bullish Andrew’s Pitchfork in September. The inside Real Body on the candle will have some looking for a reversal, but it really just means indecision. The Relative Strength Index (RSI) is holding and moving sideways along the technically overbought level while the Moving Average Convergence Divergence indicator (MACD) is rising. These support the case for more upward price action. At the 113% extension of the move lower, some consolidation is not unexpected. There is no resistance above the recent top but a push through would look toward the 127% extension near 182. Support lower is found at 157.50 and 145. Continued Upward Price Action.

Heading into the last Quarter of the year the equity markets look strong, maybe a little overbought if you need to find something wrong with them. The monthly outlook suggests that Gold will continue to consolidate within the downtrend while Copper also consolidated with a upward bias. Crude Oil looks to continue the broad consolidation but with a downward bias while Natural Gas looks slightly better higher in the short run within the downtrend. US Treasuries may continue to consolidate in the downtrend while the US Dollar Index looks better to the downside. The Shanghai Composite may continue to bounce in the downtrend while Emerging Markets consolidate with an upward bis as the German DAX just goes higher. Volatility looks to remain low giving a tailwind to equity markets higher. Their charts show they all have an upward bias with the IWM and QQQ strongest and teh SPY lagging. coming months. Use this information to understand the long term trends in Equities and their influencers as you prepare for the coming months.

For complete analysis of the 13 markets summarized here join the premium service and read Macro Month in Review/Preview September into October 2013 or send me an e-mail requesting a special Macro package.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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