We've asked our friend Jim Robinson of profittrading.com to provide his expert analysis of charts to our readers. Each week he'll be analyzing a different chart using the Trade Triangles and his experience.
Today he is going to take a look at the technical picture of the SPDR S&P 500 ETF (PACF_SPY).
I hope you are having a GREAT week !
This week let's take a look at the SPY (the S&P 500 ETF), which tells us the direction of the general stock market.
When trading stocks with MarketClub we use the monthly Trade Triangles to tell trend and the weekly Trade Triangles to time the trades.
It is important to keep an eye on the general market when trading stocks because when the broad market is trending higher, about 80% of the stocks will follow it higher, and when the general market is trending lower, about 80% of the stocks will follow the general market lower.
The SPY went on a MarketClub green Trade Triangle on 1/15/13 and has stayed on a monthly green Trade Triangle since, which tells us the trend of the over all market this year has been up.
The SPY is currently on a weekly red MarketClub Trade Triangle which probably reflects a counter trend correction.
If the SPY trades higher from here and puts in a weekly green Trade Triangle that would suggest the counter trend correction is over and mean that the general market is probably starting another bull move higher.
The SPY is not only a good indicator of the direction of the general market, but is a good ETF to trade, so the SPY is a great Chart to Watch right now.