Quote Originally Posted by adam ali View Post
Also, Billy, could you put up the chart and a brief analysis of SPY. I know you and Pascal don't wish to do this daily but with the macro environment being what it is, an update would be much appreciated.

Thanks.
Adam,
SPY is by far the weakest setup currently. The only encouraging development so far today is its ability to hold the MPP (131.03), likely helped by the proximity of WS3 (130.52) on the last day of the week, suggesting that bearishness is exhausted for this week. A close today below MPP would be very ominous for next week because of the lack of support before the 200-day moving average (127.74).

But this weak SPY setup may actually hide a rampant growing risk-appetite for relatively cheap small-cap (IWM) and growth (QQQ) stocks as these more aggressive indices have a much stronger multi-pivot setups. Money flowing out of SPY, as detected by the 20 DMF, may actually be funneled back into IWM and QQQ stocks, which would be a precursor of very bullish developments for the overall market.
Billy

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