We are updating our look at the S&P 500 via our favorite chart of SPY through Thursday's close.
The Weekly Displaced Moving Average (DMA) Channel (Yellow Band) sees the current price still above the channel. As such, Bias remains positive.
Second, the Erlanger Volume Swing (EVS) is at 6.69 from 1.23 . Above 0 is good and below 0 is bad. The current action is now positive.
Third, the Erlanger Crossover Spread (EC) Spread is at 51.54 from -1.54 which sees nice improvement.
Last, the Erlanger Trend Direction (ETD) moves to uptrend from rally mode.
So what is an investor to do here? We would recommend to stay with strong stocks and start to build a shopping list of new names.
Positioning in our Morning Matters Portfolio off this chart and several other indicators find cash is at 33%.