Last week’s giant U.S. Consumer Price Index (CPI) move put the indexes into what I call “Inverse Trampoline” moves. This is when price is over the 50-day simple moving average (SMA) and the Moxie Indicator™ is below zero.
This is a bearish signal that followed through after the Federal Open Market Committee (FOMC) event midweek. Now that the SPDR S&P 500 ETF Trust (SPY) is back to its daily 50-day SMA, which we have seen two other times, let’s see if there is a bounce forming, and if that bounce will be shortable.
This is what I’m seeing on the Moxie Indicator™:
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Your Profit Pilot, TG