Ever since the bear market started, I have been using the monthly 10-day simple moving average (SMA) as a guideline. If the SPDR S&P 500 ETF Trust (SPY) is under it, we are bearish. If over, bullish.
Well, with Federal Reserve Chairman Jerome Powell’s comment last week about slowing benchmark interest rate hikes at the December Federal Open Market Committee (FOMC) meeting, we now have the SPY over its monthly 10-day SMA.
If this sticks, then I have to conclude we are bullish, but the month isn’t over yet.
Let’s follow this idea more:
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