Chart Talk {04.06.16}

A chart of the S&P 500 ETF, SPY.   Chart comes to you from TradingView.com.  I've used numbers on this baby so as to hopefully not make it so busy and confusing.  You can click on the chart to make it larger if you want.

1.  Downward sloping trendline from the highs last may.  Bulls want to see this line taken out.  Ideally that would come on heavy volume and solid price movement.  Bears will point out that we've done nothing but come close to this resistance and to them it looks after the past few days as if price is starting to roll over.  

2.   Highlights that region of resistance we've talked about for months now.

3.   The red line shows a longer term trendline that dates back to the 2009 lows.  We briefly penetrated that line time back in the winter.  That was the first time that occurred since 2009.  From there we've decisively rallied. {See 4. } That trendline  {red} will at some point intersect with the other line {green} we showed in point 1 unless one or the other is decisively taken out prior to that event.  At some point the market runs out of room and one of these trends will be proven right.   

4.  Roughly 13% rally from the lows to yesterday's close.

5.  Shows markets are on a longer term and intermediate basis overbought by our work.

*Long ETFs  related to the S&P 500 in client and personal accounts.  Positions can change at any time without notice.