SPY Charts 1/16/09

3M, Daily - Primarily shows sideway market for the past 6 weeks.  The final candle did finish higher following seven down days.  This could be the rule of 7 & 3's if you are into numerology.  MACD is "red".  The 10, 20, 30 Moving Averages are all very close together and non-directional.

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20D, 60m. - Potato Trading requires that you recognize the "Sweet Potato" formed by the crossover of the 10 & 30 moving averages.  You either have a "Bull" or "Bear" potato.  A new potato must be confirmed on the 30 & 60 day time frame to be valid.  In this case the 60m. chart has NOT confirmed as the candle has not completely formed above the 30D moving average.

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10D, 30m. - On this chart a "new" bull potato is forming (not yet confirmed on the 60m. chart).  The market gapped up but had weak initial follow through to the upside, however, it did rally in the afternoon to form a higher low and it did close above Thursdays close.  Black MACD is noted.  Early bull warnings are seen at green spots.

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5D, 30m. - Larger view of prior chart. 

Wedge formation with very tight pattern of moving averages (market undecided).

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2D, 15m. - Note the double bottom on the reversal at midday.

Overall this was a luke warm reversal with a significant lack of thrust to the upside.  We are facing a three day hiatus in the market with an inaugural ceremony on Tuesday which leaves a lot of guess work in the mix.

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SPY 3M, Daily - 1.16.09

The primary observation on this 3M, Daily chart is the persistent sideways movement of the market in the past 6 weeks.  We have remained in a relatively narrow range.  The final candle did finish to the upside which was a break in the trend in that the market had been down for seven days in a row. Perhaps the "rule of 7 & 3's" played a part if you are into numerology.  The 10, 20, 30 Moving Averages are "tight".

(Click chart to enlarge)