Follow the Trend, Not the Talk - Quick Note

Yesterday March 5th the S&P 500 (SPY) dropped 1% in anticipation of Fed Chair Powell’s testimony to Congress today at 10 AM EST. Price did hold the 10 EMA yesterday and gapped up in the morning. There was a lot of talk that Powell’s testimony to Congress would trigger a drop in stocks. That did not occur as Powell’s speech ended up being a nothing-burger. The stock market did continue to trend higher, using yesterday’s weakness as a buying opportunity.

Our 2-hour chart setup picked up the trade yesterday as price found buyers at the 50 SMA, close to the Lower Bollinger Band. The cycle is in the middle, so there is still time before a drop to the cycle trough. According to the cycle, SPY should find some selling between 3/7 to 3/11. A new cycle should bring a new opportunity around 3/11 and after. The trend is your friend til the end, so follow that instead of lip-flapping speculation.

Meanwhile, the AI market leaders continued higher. Paid subscribers can see our cycles for NVDA, AMD, and SMCI, the three current market leaders.

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