SPY Flirting With Near-Term Stock Market Sell Signal

On Friday, the SPY closed beneath its 20-day moving average (DMA) for the first time since the Dec 28 close at 224.40, which triggered a very minor bout of weakness for two days into a Dec 30 low at 222.73 (0.93%). Purely from a technical perspective, when the SPY closes beneath the 20 DMA, the ensuing weakness is dependent on the slope of the moving average (MA) at the time. If the MA is sloping upward, then the likelihood is that SPY will endure just a brief, shallow correction prior to a resumption of the underlying uptrend.
The Market Oracle

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