February 14th, 2017 02:02
Good morning traders! I hope you all had a wonderful weekend. I enjoyed a weekend in Tahoe with my family and friends. While the skiing, company and snow were awesome, getting there was a challenge. Highway 80 had been closed on Friday for a mudslide. We’ve had an inordinate amount of rain in California as we’ve tried to climb our way out of another drought. Our drive back wasn’t much better as 180,000 people were being evacuated in Yolo County for a failing dam. I must apologize for not getting this market update out to you on the weekend but I never expected to spend so much time on the road. In any case, here it is now.
This market is a non-stop race car running bears over like giant road kill on the highway and tossing them onto the rocks. Ever since breaking out of the ascending triangle on Thursday, it’s continued to make big moves to the upside. At some point, it will need to pause and fill in gaps. A healthy pull back is certainly in order.
Personally I’d like to see it come down to the 8 exponential moving average (my trigger line) and bounce from there. But the bullish sentiment cannot be denied as SPY makes ever new all-time highs with no end in sight. It’s true that earnings have been good but have they really been this good? It seems a glowing economy is getting priced in and no manner of controversy can slow it down. As dams break in California for too much water in a drought stricken state, we can certainly wonder at the mystery that is extreme in nature, the Oroville dam and this market.
Here is today’s daily SPY chart.
The author, Danielle Spandau is a seasoned trader/investor and educator also known as The Trading Wife.
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