SPY Spiders Daily Chart Island Reversal

SPY daily chart textbook island reversal called to my attention by Arthur Hill at Stockcharts tonight.  For any of you budding technicians, Stockcharts is highly recommended to help you develop your charting skills.  Nearly 250 of my charts are shown in the Public Charts section organized by sectors and this is a great web site to further your studies.  While there, do not forget to vote for my work as all my other followers do, which keeps me in the upper echelon of Wall Street technical analysts. A handy link to Stockcharts is provided in the margin on this site and on Keybot the Quant's site.

Enough of that, let's look at the island reversal.  The gap up was in late March to create the island. Then the gap down occurred two days ago to create the island reversal with all those buyers above wishing they had not bot. Gaps need to be filled at some point in the future, so price will make it back up to the gap zone but, it may be sooner, or, it may be later.

Something of equally great interest is that for the SPY, price is pennies above the 50 MA, and the 20 MA is above the 50 MA; this gives an ever so slight edge to the SPY bulls. For SPX, however, which is the S&P 500 Index, price is below the 50 MA, and the 20 MA and 50 MA are sitting on top of each other. The SPY and SPX should be in agreement but instead they are in conflict with the SPX leaning towards the bear side and SPY towards the bull side. This will be resolved this week and once both are on the same side, be it favoring bull or bear, that will tell you the intended direction of the broad markets moving forward into next week.  This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your finanical advisor before making any investment decision.