S&P 500 exhibits bullish technical structure (flag breakout, VWAP support) indicating potential upside.
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If you are looking at the E-Mini S&P 500 index, and if you are one of those day traders, it has been trading above the volume- weighted average price since last night. So, this is actually a somewhat positive sign .
We are trying to recover a little here. You need to stay above the average daily volume-weighted price to give a little confidence that you are actually able to recover some of these levels.
On the daily chart, we have a breakout of an ascending flag pattern. We have seen a decline over the past two days, but today you will notice that we have returned and touched the 20-day moving average of the E-Mini S&P 500 index.
This is similar to a breakthrough followed by a test of a previous resistance zone . Perhaps we can use this as a new support zone and continue moving upwards.
I think you should look at the number of stocks that are trading above the 50-day moving average of the S&P 500. It's at only about 27%. This represents one standard deviation from what we have seen over the past three years.
Traditionally, this has been an opportunity to buy in this market, especially for sectors that have experienced excessive and strong selling.
What this channel has said about $SPY
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