SPY 15 min 10The SPY 15 minute chart printed a close today with only one of the 4 confirmation signals on a sell; prices still trading below the recently broken uptrend line.  Following the last update earlier today, prices moved slightly higher causing the stochastics to immediately move back above 80 following a very brief & shallow dip below.  The MACD pretty much did the same with a very brief and shallow dip on the signal line that it was barely discernible.  Therefore, technically speaking we did have a whipsaw that lasted one or two 15-minute candlestick periods (as it’s the closing values after each 15 minute period that matter), although the most important/accurate indicator for this time frame, the 14-34 ema pair histogram failed to cross below zero today.  Regardless of the brief sell signals on the other indicators, all three on the bottom of the chart (stochastics, 14-34 histogram & MACD), all closed back above their respective “buy” signal levels today and so we’ll just have to continue to monitor these signals tomorrow.

SPY 60 min 5Zooming out to the 60 minute time frame, the recent breakdown below the primary uptrend line preceded by sharp divergences on the MACD & RSI could signal that we are in the early stages of a correction but we’ll need some additional evidence, such as all four sell triggers on the 15 minute chart, to help confirm.