SPY Views

• Posted by Greg Harmon
• on February 17th, 2016

The stock market gives different signals and opportunities to all participants based on their time horizon. This happens all the time. Today’s broad market is no different. It gives some positive signals to some while lack luster or even negative signals to other. Your first priority as an investor or trader is to determine what your horizon is and then develop a plan for the market around it.

Using the current chart of the S&P 500 ETF ($SPY) below as an example there are different signals for different horizons. On the short term timescale the trader will see a move over the downtrending resistance on Monday, continuing in the pre-market action Tuesday. This is a market to own on this timeframe.

But an intermediate term trader will see something completely different. The SPY held at the prior low but continues in a range between 181 and 195. She might trade the range or step back and determine that the no-mans land between needs to break before an opportunity exists.

A trader on a slightly longer timeframe sees a lower low made against a lower high in October. This defines a downtrend. This trader may remain short or out of the market until a new low or a higher high is made. So which trader are you? Are you following your plan?

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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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