A zoom in on the SPY chart
- SPY started weak on monday, dropping below the 20d MA
- It regained strength on wednesday (close above 10dMA ) and thursday (close above 20d MA)
- On friday, it fell below both the 10 and 20d MA
- For may, we have a downtrend channel, offering support and resistance levels
- Breaking the 20d MA and that resistance level is trigger to buy
Keep an eye on the relationship with the US Dollar.
A bearish dollar is good for the US stock market
The reason why I am focussing on the Dollar is that it appears to be the current leading indicator for the S&P 500.
The problems in Europe (fear of the Greece default) weakens the Euro
A look at the USD bullish chart :
- It closed above the 50 dMA
- breaking the 21.8 level will put higher pressure on the S&P 500