Stock Market’s Recent Key Reversal Buy Signal

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Each average gapped lower on October 13 and then rebounded to close above their October 12 highs.

Moving forward to October 13 you see the key reversal buy signal. The low was $348.11 and the close as $365.97, above the October 12 high of $359.82.

The monthly value level for October is the horizontal line at $352.75. The higher horizontal lines are the annual, semiannual and quarterly risky levels at $436.51, $440.84 and $475.25, respectively.SPY has a negative but oversold weekly chart with the ETF below its five-week modified moving average at $375.25. It is above its 200-week simple moving average, or ‘reversion to the mean’ at $359.78, after ending last week below this moving average.

 

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