Monday, April 6th, 2020 Broad Market Trend

A major change in the markets at the close today.  Let's jump right in and review both the VTrend and ATrend on the SPY to give us a perspective on the broad market trend.

Taking a look at the included graphic we see the VTrend closes YELLOW!  This is the first time since February 24th that we get anything beside RED.  On the ATrend, we now have a close that is GREEN! 

So, basically what does this mean? 

With these two indicators, we know 1) Volatility is coming out of the market, and 2) If we take volatility out of the equation (which is what the ATrend does for us) we would now be in an uptrend.  Hold on though.  Don't forget to take a look at volume.  On a 10 day look back, volume is less than average, so to be in a confirmed uptrend, we absolutly have to have stronger volume when close > open.  hmmmm.... 

So just be careful, and remember the adage, "the markets take the stairs up, and the elevator down" ...  We may now be in an overall uptrend, but for confirmation we need a GREEN VTrend AND volume confirmation.

Be Well and Trade Smart!