**These are my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups. Subscribe to my nightly Daily Trade Ideas on the right to see the rest of this letter.**
“There is only one success — to be able to spend your life in your own way.” CHRISTOPHER MORLEY
A nice gap and go type of day for the S&P right on schedule.
Many metrics still say that the S&P is still overbought but those are lagging indicators which I don’t hold any regard for.
Markets can move higher whether they should or not when talking about indicators like the RSI, MACD, stochastic or whatnot.
I do show them on charts in this letter but honestly, I don’t look at them.
On my trading charts there are no indicators, just price and volume and a few moving averages.
A nice move from the SPY ETF although higher volume would be ideal but volume doesn’t make us money and we’ve seen moves on lighter volume really work well so this could be the start of that type of move once again.
We should continue higher now but a move back into the flag would be a sell signal and reducing stock sizes would also be a good idea in that case.
There does seem to be a lot of resistance to this move higher and that is good, it’s when everyone is on it that I get worried.
Even some of the traders who I have the highest regard for are wanting a correction and they are usually on my side, but not yet this time.
Have a swell evening.