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John Mylant
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Residing in Colorado Springs, Colorado. Has been trading and coaching using a self-developed option trading system for 10 years. Philosophically conservative, accurately trades weekly options with a strong risk management approach. Well sought after by investors around the world, he teaches a... More
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SPY Technical Analysis
  • ETF SPY: Bulls Are Still In Charge! 0 comments
    May 11, 2013 8:45 AM | about stocks: SPY

    Technically Speaking

    RSI- having touched the upper band doesn't look like it's come to push through the 70 this time even though it is flirting with the upper Bollinger band. For this reason looks like us can state bullish in the following week.

    Bollinger Bands-this is interesting, I did not expect the stock to move to the upper band like it has again. Presently continues to hug the upper band which is the strongest indication of a bullish trend. (click to enlarge)

    MACD-MACD indicator is giving us the strongest indication that the trend and momentum is going to continue into the following week because it doesn't like it has yet reached a top is sitting well in the bullish territory.

    Summary-everything in the SPY chart indicates that the stock continues to be bullish and I would expect this to continue into next week.

    Current Events

    Some analysts say that when the market starts off this strong, it tends to keep the upward momentum going until the end of the year.

    "Instead of 'Sell in May and Go Away,' we may be setting up for a surprise May rally," said Ryan Detrick, senior technical analyst at Schaeffer's Investment Research in Cincinnati, Ohio. "What's encouraging is that small-cap stocks have been outperforming the market recently. It's a sign that the market is going for even the riskiest sectors."

    If 2013 plays out like that - with another 9.7 percent gain in store for the S&P 500 - the broad index would finish the year up a whopping 24.3 percent.

    The American consumer will get Wall Street's attention next week when a raft of economic data and retailers' earnings could shed some light on whether they shopped for more than just the bare necessities.

    Retail sales for April will be released on Monday by the U.S. Commerce Department.

    Other economic data on tap includes April import and export prices on Tuesday, followed on Wednesday by the U.S. Producer Price Index for April, the Empire State Index for May, industrial production and capacity utilization for April, and the National Association of Home Builders Index for May.

    On Thursday, the economic agenda includes the U.S. Consumer Price index for April, housing starts for April, weekly jobless claims and the Philadelphia Fed's survey for May.

    With 89 percent of the S&P 500 companies having reported earnings so far, 66.7 percent have topped profit expectations, above the average of 63 percent since 1994. However, only 46.4 percent have beaten revenue expectations, well under the average of 62 percent since 2002.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: SPY
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