Market internals are very strong today and the SPY's five- and ten-day moving averages are both hooking higher with the intermediate-term downtrend line definitively broken. In addition, new highs participation is also present. This was the type of strength I was hoping to see. That said, this move puts the index well into short-term overbought territory just as it looks to challenge its 20-day moving average above (say $109.30). How the market handles these technicals and the extent of any pullback will tell us just how safe this market is here. Certainly the news-cycle appears more constructive early-on in this holiday shortened week -- we'll see.
Jeff Pietsch is a registered investment adviser in the State of Washington. The adviser may not transact business in states where it is not appropriately registered, excluded or exempted from registration. Individualized responses to persons that involve either the effecting of transaction in securities, or the rendering of personalized investment advice for compensation, will not be made without registration or exemption.
This blog is for educational purposes only, and nothing herein should be construed as an offer to buy or sell, or as a solicitation of an offer to buy or sell securities, or to provide individual investment advice. Investing is risky and past performance, whether actual or tested, is no guarantee of future results. The author neither endorses nor warrants the content of this site, any embedded advertisement, or any linked resource. The author or his managed funds may hold either long or short positions in the referenced securities. Republication rights must be expressly granted by author in writing. Astrices (*) indicate a compensated hyperlink or product reference. Author is the sole owner of the "ETF Rewind," shares in the proceeds of "DV_indicators", and may exchange services in-kind with participant contributors.