S&P 500 ETF- SPY
Technically Speaking-
Friday defined a continued movement up as we saw the bounce off the middle Bollinger Bands again. This is what we wish to look for in a strong trend, the continued bounce off that middle band.
Both the RSI & MACD are steady and support the strength of the movement. The MACD Histogram is the only thing that is showing us weakness so far and it is a very good future indicator. But overall, we have a strong movement in the SPY still.
Other Market Influences-
As one analyst wrote…” In November, we got a flood of positive economic news, from jobs reports to ISM manufacturing data. The market took the news and ran with it. At this point it seems over-extended. It is time for the market to take another breather and allow the economic news to catch back up.”
More than anything, this week will be earnings. We will have a huge amount of earnings reported this week and if they are good, they could have a strong influence on the markets, and visa versa.
Gold is puling back. Gold charts give us a triple top over the past 3 months telling us that we have reached a short-term top in GLD and likely to pull back at least to the 26 week moving average currently at 129.19 as it has multiple times since crossing over in December of 2008. If the markets move like they have, the pull back will be market-wide, but if it moves like it normally should, while gold pulls back, the markets should move up.
