$SPY has been in a new “Go” trend since a few weeks.
We see that GoNoGo Trend has weakened with the indicator painting weaker aqua “Go” bars. This has happened after failing to set new highs. During this time, GoNoGo Oscillator has fallen to test the zero line from above. We know that in a healthy “Go” trend, the oscillator should stay at or above the zero line. We can look back at the chart to see that when GoNoGo Oscillator finds support at zero, we have seen Go Trend Continuation. When GoNoGo Oscillator has failed to hold the zero line, we have seen a deeper correction and a change in trend color in the price panel above. We will watch closely to see if the GoNoGo Oscillator finds support at zero this time. If it bounces back into positive territory we will be able to say that momentum is resurgent in the direction of the “Go” trend, and will look for price to try to challenge prior highs. If it does not hold the zero line, that will be a bigger cause for concern.
