Commentary

11/23/20 – Midday Signals

The foxes remain bullish and properly so. A serious move down has to start with volatility. I’m one of the few people who can’t predict volatility but, at the moment, it isn’t here.

The daily SPY chart shows the weighted price in green. The various moving averages are 21 days.

Yellow = DEMA. Double Exponential Moving Average

White = Weighted Moving Average

Purple = EMA

Cyan = SMA

The green line has cut the yellow line. The last three times that happened weren’t great times to be long. The message here looks more like a reflection of the recent up move and consolidation than a harbinger of doom.

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