Today's Chart of the Day was shared on Twitter by Brian Shannon (@alphatrends). It's a 30-minute candlestick chart of the S&P 500 ETF, SPY, over the past seven weeks. Brian uses a 5-day moving average (5-DMA) to gauge the direction of the intermediate trend. Highlighted In green are periods where price is above an upward sloping 5-DMA, and making a series of higher highs and higher lows. In red are periods where price is below a downward sloping 5-DMA and creating a series of lower highs and lower lows. Brian explains that his intermediate-term bias on $SPY is bearish because price is currently below a downward sloping 5-DMA and has made both a lower high and lower low. As you can see from each highlighted period, Brian's criteria for identifying the intermediate trend has served as a good way for active traders to decide whether to be bullish, bearish, or neutral.
Chart of the Day - Friday, February 21st, 2020
February 21, 2020
