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Updating our now ubiquitous “dirty thirty” 30-minute chart of the SPY (actively traded ETF for the S&P 500 Index), you will note that for the first time this month the bulls have popped and held price above the 20 period moving average. Moreover, the bulls are giving the 50 period moving average on this timeframe a go as we speak. While it has indeed been sound progress today after previously falling victim to one bear flag breakdown after the next below the 20 period moving average, the bears still have the declining 20 and 50 period moving averages working in their favor.
In order to really get excited about a further move higher, we are looking to see those moving averages smooth out and then torque higher. The only way that will happen is if price continues to at least hold these levels. Hence, as I alluded to earlier this morning, the longer the session progresses without any kind of meaningful fade, the more likely it is that we will see buyers come off the sidelines to play ball.
