Newsletter of Danny Merkel - Issue #119
Market Review:
Despite Friday’s strong rally, the S&P 500 remains more or less stuck.
The index continues to struggle to overcome resistance that is rooted in a gap down formed in August:
The fact that SPY has yet to gain $0.01 over the past 9 months isn’t strong bull market behaviour.
And if you zoom out further, this struggle is occurring on a wide variety of timeframes:
Price of SPY 5 months ago: $405
Price of SPY 8 months ago: $405
Price of SPY 10 months ago: $405
Price of SPY 12 months ago: $405
Price of SPY 15 months ago: $405
Price of SPY 24 months ago: $405
and…
Price of SPY 4 days ago: $405
Although the S&P 500 has gone sideways for 2 years, the reality is that the average retail trader’s portfolio has fared much worse.
Beneath the surface of the general market lies the murky quagmire of growth stocks.
Looking at just the relationship between the 100 & 150ema, we can see that Long Momentum was working quite well back in November and December of 2020 with a strong and robust histogram in…