Today's Chart of the Day was shared on Twitter by Brian Shannon (@alphatrends). It's a 30-minute candlestick chart of the S&P 500 ETF, SPY, over the past seven weeks. Brian uses a 5-day moving average (5-DMA) to gauge the direction of the intermediate trend. Highlighted In green are periods where price is above an upward sloping 5-DMA, and making a series of higher highs and higher lows. In red are periods where price is below a downward sloping 5-DMA and creating a series of lower highs and lower lows. Brian explains that his intermediate-term bias on $SPY is bearish because price is currently below a downward sloping 5-DMA and has made both a lower high and lower low. As you can see from each highlighted period, Brian's criteria for identifying the intermediate trend has served as a good way for active traders to decide whether to be bullish, bearish, or neutral.
Getting The Chart Report is as Easy as 1, 2, 3!
Enter your email address, check your inbox, and then relax and absorb all the amazing charts and analysis packed into your new favorite daily newsletter!