The long term up trend remains very much intact as does the weekly. For the third straight week the SPY closed higher than it's previous all time high made in September. However, as you can see by the latest price bar the market did not make a lot of headway; closing barely higher than where it opened on Monday and just above where the market closed last Friday. If you are a student of Japanese candlestick charts you'll recognize this bar as a "near" doji or indecision bar. Next week's price action will tell us a lot about the future direction of the market on an intermediate term basis. If the market declines below the low of this week's bar the likely direction of the market will be to at least test the highs made in September. If that does happen and the market declines below that level, then the market would likely continue down into the trading range between the upper and lower green lines.
CONCLUSION
By next week's post I will begin posting intermediate term signals as they occur based on my methodology. I should stress that the purpose of this chart should not be whether to decide whether one is 100% in or out of the market; but rather whether or not one may want to consider hedging, increasing or decreasing one's position in the market. The decision to be in or out of the market should be made based primarily on the longer term trend signals. Have a great weekend everyone. GO BLUE!
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