Commentary

5/4/21 Afternoon Signal xLH

The current upper cycle excursion has lasted from late March. The daily signals weren’t all that important with the lack of price action. FWIW, today was xFC. xLH is not a mechanical buy, weakness tomorrow will make the signal x00 which is a mechanical buy.

This down move out of extremely low volatility could be quite sharp.

SPY was 20% above 350, near the current 52 week SMA. A visit to that level would not be extraordinary. A move to 400 here makes the rectangle in play, and 370 is just the 10 week low. Always something to worry about.

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