Kevin Spires, CFA, FRM
(Bellaire Capital Management, LLC was long SPY in client accounts at the time this piece was written)
(Bellaire Capital Management, LLC was long SPY in client accounts at the time this piece was written)
The SPY ETF (S&P 500 Index ETF) is at a critical juncture. The 200 day moving average (blue line in the chart at the left) and the upward trend from last October are converging near current price levels. A drop of the SPY below the 200 day moving average might cause a wave of additional selling.
Summer sell offs have a tendency to over shoot, so I would cautious about entering buy and hold positions - even if the 200 day moving average should hold. I am expecting the market to have difficulties making new highs until after the November elections.
Disclaimer:
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.
Summer sell offs have a tendency to over shoot, so I would cautious about entering buy and hold positions - even if the 200 day moving average should hold. I am expecting the market to have difficulties making new highs until after the November elections.
Disclaimer:
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.
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