$SPY on verge of daily RWB up-trend–window dressing is upon us

GMI6/6
GMI-25/8
T210842%

I am watching for the beginning of a new significant up-trend in the major index ETFs. I define an RWB up-trend using 12 exponential moving averages and the close. A daily RWB up-trend is when the 6 red shorter daily averages are rising above the 6 blue longer daily averages so that there is a white space separating them. The beginning of a daily RWB up-trend starts with the closing price (dotted line) rising above all 12 averages. Next the red lines climb above the blue lines. The chart below has arrows showing the start of four RWB up-trends. It looks like the SPY is beginning an RWB up-trend but there is no visible white separation yet. If the RWB pattern matures, the market is headed higher. During most of an RWB rise, the closing price leads all of the averages higher. A failure of the RWB pattern would occur if the SPY were to close back below all 12 averages and the white separation disappears. We are approaching the end of second quarter and the likely mutual fund window dressing period, so it would not surprise me to see an up-trend develop. The DIA’s pattern looks like the SPY’s but the QQQ is a little further behind. These patterns help me with individual stocks too. It is important to study the market’s behavior, ignore the news and media pundits, and to pull the trigger only after a signal has occurred, not before.

 

The GMI=6 and Green.

$SPY approaching daily RWB up-trend; short interest rates in daily BWR down-trend

GMI6/6
GMI-25/8
T210844%

RWB up-trend= all 6 red lines rising above rising blue lines so there is a white space between them. SPY appears to be forming a new daily RWB up-trend. Note closing prices (dotted line) are back above all moving averages. I watch what the market is doing and ignore the news and endless pontifications by the media.

Want to know what the Fed is doing? Short term interest rates are in a  daily BWR down-trend.