SPY has been underwater lately throwing us mixed signals everyday. In my opinion daytrading and/or short-term swing trading this market can be both profitable and slightly dangerous. But nonetheless SPY is going oversold on the hourly chart and if we look back historically, SPY doesn't like to be oversold. Not only is it approaching oversold but it's doing it with a bullish divergent pattern. We are seeing higher lows on the candles but lower lows on the RSI. Giving us not much room to play with. I think this will bring another retest on the 200MA again maybe tomorrow or Wednesday. With all the bearish news coming out about Apple and the super bearish movements of AMZN, I'd be weary to go long SPY here until we have some sort of decent news. Let's see what happens tomorrow.
Comment:
MORE DIVERGENCE!? Bullish divergence is setting up on the hourly as SPY moves lower our RSI is still rising. I think this is either going to bring us back to testing 200MA OR even beating the 200MA.