Price actions are very negative currently $SPY | Investment Moats Skip to Content

Price actions are very negative currently $SPY

VIX rose 34%++ and S&P500 did a 4.5% plunge. All in all, it was very negative from what the price sentiments is telling us.

Here is a daily chart of the S&P500. I will try to be positive here and disprove this is NOT a bear forming.

Turns around the long term moving average is very positives and if this morning’s selling is followed by tremendous buying more than this morning’s selling, we could see a bottom developing and the markets continue upwards (green and blue arrows)

My weekly 17 Week and 43 Week EMA have not created a sell signal but there are 2 ways bearish trend could develop. It will either continue this low volume gyration between the 20 EMA on the daily chart and the 1150 region (dark red arrow). In this case, it will give time for my 17 week to cross over the 43 week. The other way is for a full blown drop off for the next few days (purple arrow).

So here is the equation

  1. A negative divergence where the price couldn’t breach the 1440 high.
  2. A 20,50,200 Daily EMA Death cross.
  3. Not much volume on the buy side, a hell lot of volume on the sell side.

What do you guys think? I find it hard to be optimistic here.

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