SPDR S&P 500 EXCHANGE TRADED FUND (SPY)

chart by r/PierresLongTermCharts

We had a look at this about a week ago.

I use the sma to help with the trend.

I warned that it is not such a good idea to be buying when the price fell under the blue 30 sma.

Especially if the sma is beginning to flatten out, like it is here.

Only buy when the price is ABOVE the sma, which should be flat or even better, rising.

It's even fallen under our 40 support level on the indicator below. ( momentum down? )

And it has now also fallen under support.

Support is where buyers sit, holding the price up.

If it falls below support, buying has dried up. Selling starts.

It's moved into a downtrend. (stage 4)

Stay away from situations like this.

It could fall a lot lower.