As the headline notes, both the medium-term and short-term trends are up for the S&P 500 ETF (SPY). Yes, SPY held above its early October low and RSI held the 40-50 zone. With a big move on Thursday, SPY broke wedge resistance and RSI moved back above 50. A trend in motion stays in motion. In other words, expect further gains and possibly a move above the October high as long as the medium-term up-trend remains in force.
On the 30-minute chart, SPY gapped up and broke resistance on Wednesday morning, which was ahead of the Fed policy statement. CCI also surged above +100. Despite some volatility just before and after the Fed statement, the index ultimately held the gap and resumed the uptrend on Thursday morning. I am now raising key support to 105.5. The short-term uptrend remains in force as long as CCI holds above -100 and SPY holds above 105.5.
