SPDR S&P 500 ETF Trust (NYSEARCA:SPY) No Reason to Celebrate Brexit

SPDR S&P 500 ETF Trust (NYSEARCA:SPY) No Reason to Celebrate Brexit

SPDR S&P 500 ETF Trust (NYSEARCA:SPY) No Reason to Celebrate Brexit

There is little upside to the Brexit vote, regardless of the outcome, for the SPY.

If British citizens vote on Thursday in favor of exiting the European Union, it would allow Britain to negotiate its own trade deals and better control who enters the country, among other things. Both sides in the polarized debate have mounted extensive campaigns and polls show the vote could be close.

Trump, who will travel to Britain this week, supports the “Leave” camp, popularly known as Brexit. “I would personally be more inclined to leave, for a lot of reasons like having a lot less bureaucracy,” he told The Sunday Times.

Still the recent nonsense is enough to shift the technicals on the SPY to Bullish

SPDR S&P 500 closed up 0.250 at 208.100. Volume was 91% below average (consolidating) and Bollinger Bands were 37% narrower than normal.

Open High Low Close Volume___
208.300 208.420 207.950 208.100 9,156,255

Technical Outlook
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish

The current market condition for SPDR S&P 500 is:


The close is currently Above it’s 200 period moving average.
The close is currently Above it’s 90 period moving average.
The close is currently Below it’s 30 period moving average.

Moving Averages: 10-period 50-period 200-period
Close: 208.96 208.03 201.94
Volatility: 10 11 19
Volume: 96,425,656 88,159,504 120,618,896

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


SPDR S&P 500 is currently 3.0% above its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of SPY at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on SPY and have had this outlook for the last 16 periods.

HEFFX Momentum

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 44.4229. This is not an overbought or oversold reading. The last signal was a buy 3 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.56. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 105 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -58. This is not a topping or bottoming area. The last signal was a buy 1 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 6 period(s) ago.


A black body occurred (because prices closed lower than they opened).

During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

The following two tabs change content below.
Shayne Heffernan Funds Manager at HEFFX holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.

Latest posts by Shayne Heffernan (see all)

You must be logged in to post comments :