The SPDR S&P 500 ETF ($SPY) has pushed higher after bottoming out in October – and looks poised for more strength ahead. Here’s why..
Buy Signal
The daily chart of the SPY shows a new buy signal developed after Thursday’s trading via the Modified PEMA Crossover system. This signal works best in a trending market, which the SPY looks to be developing since the October low.
Basically, this signal is designed to help you identify when to “buy the dip” and “sell the rip”, which generally offer the best entries in unidirectional, trending markets.
The fact that Friday was more of a “digestion” day gives you extra time to get a favorable entry.
The Target
If SPY continues to hold above the two-day low of $123.60, we should see another wave of strength ahead, likely to a target of between $129.35 and $130.
Keep an eye on this zone as a target over the next 1 to 3 days.
FREE 50-Page eBook
If you want to read more about the Modified PEMA Crossover system – and more! – download your free copy of my FREE 50-page eBook Profiting with Pivot-Based Moving Averages HERE!
Let’s see how this one turns out!
Cheers!
Frank Ochoa
PivotBoss.com
Follow Frank on Twitter: http://twitter.com/PivotBoss
