📈 Is $SPY Bottoming?

When do we buy the dip?

SPY Indicators

The first indicator that I like to use on SPY is the MACD histogram. With this indicator, I am looking for a change in trend to spot a possible bottom.

What you’re looking for is the size of the red bars to begin getting smaller. That is what indicates a change in trend. You can see that historically once we peak on either side, we typically see a change in trend.

This does not predict the size of the bounce we may see, but it does tell us there may be a chance of a short-term bottom starting to form.

Another indicator to look at is the McClellan Summation (above). What I look for here is when the lines cross each other.

Notice how it predicts sell offs when the green line crosses the blue to the downside. Then when the blue/red crosses again, we typically see a bounce.

I would keep an eye on this indicator.

I walk through additional indicators that give us insight into the state of the market in the video below: