|It was an up week for the major markets. For the week, the Dow Jones Industrial Average gained 166.47 points, or 1.33%. The Standard Poor's 500 Index gained 26.21 points, or 1.84%, while the Nasdaq Composite gained 40.39 points, or 1.66%. |
|SPY Long-term perspective:|
The SPY monthly uptrend that started on 6/14/2006 has a five waves impulse structure. Fifth wave is in progress and forming the rising wedges pattern. The rising wedge appears in a mature trend characterized by overbought long-term and short-term indicators. This situation usually generates divergence on long-term indicators. Rising wedges usually marks the reversal in uptrend. Price is near the monthly uptrend resistance line. Weekly William's Percentage Range (W%R) is strongly overbought. Weekly Lane's Stochastic is overbought and has bearish divergence. The Dow Jones index is near the monthly, quarterly and yearly trends resistance also, while Nasdaq broke the monthly trend support line. We keep bearish long-term outlook for SPY.
|SPY - Trend|
|SPY Short-term perspective:|
SPY daily William's Percentage Range is strongly overbought. W%R is considered as an earliest signal among other technical indicators to indicate an impending reversal. In addition, daily Lane's Stochastic has bearish divergence. Price is near the weekly trend resistance line. All these technical indicators suggest that SPY short-term perspective is bearish as well.
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