We are updating our look at the S&P 500 via our favorite chart of SPY through Monday's close.
The Weekly Displaced Moving Average (DMA) Channel (Yellow Band) sees the current price still above the channel. As such, bias remains positive from pullback.
Second, the Erlanger Volume Swing (EVS) is at 29.07 from 30.83. Above 0 is good and below 0 is bad. The current action is now positive.
Third, the Erlanger Crossover Spread (EC) Spread is at 27 from 17.81 which remains strong.
Last,the Erlanger Trend Direction (ETD) remains at uptrend.
So what is an investor to do here? We would recommend to stay with strong stocks and start to trim the biggest winners that will see selling if any pullback begins next week in 2020.
Positioning in our Morning Matters Portfolio off this chart and several other indicators find cash is at 33% but we will add more in the next couple of weeks to bring to 16%.