The Financial Markets are Ending the Week with a Bounce Higher

Tom Gentile

Posted in
Technical Analysis

By: Tom Gentile
January 20th, 2023

2 mins read

Monday, January 16, 2023 was a bullish day for the SPY, (my ETF that I use to analyze my directional sentiment for US equities.

That gave an indication a run towards the recent high for SPY at 410 was possible.

Alas, it did not work out that way as the next three trading days were bearish and a pull back to 390 happened.

390 has acted as a resistance and a support over the date range you see depicted in Figure 1:

Figure 1: 100-day Candle Chart with 10-30-DAY Simple Moving average (SMA) on SPY
Figure 1: 100-day Candle Chart with 10-30-DAY Simple Moving average (SMA) on SPY

With today’s bullish day this is shaping up to be a situation 390 is once again acting as a potential support price for SPY.

I placed a couple of Simple Moving Averages (SMA) on the chart.  I placed a 10-day and a 30-day SMA, (the 10-day in light blue and the 30-day in purple).

One indication of  direction or momentum is given by the SMA cross.  When the shorter=term SMA crosses above the longer-term SMA that tends to indicate a move to the upside is possible.

It works in reverse when the shorter-term crosses below the longer-term.

Simple Moving Averages are a way to visually see trend of a security.  It plots the closing price of a security for x number of days back and then (depending on your software) connects those with a line so we can see trend.

I will have a lesson plan put together in the near future further explaining this, but for right now if SPY follows through on the 10-30 bullish cross we may see US equities, the SPY move higher next week.

Of course, nothing works 100% of the time and it may reverse, but now we visually see what it could do which means if it doesn’t follow through we know how to recognize that and be prepared to trade the other direction.

App: Toms Option Tools

Toms Option Tools scan the markets for bullish and bearish trade opportunities using our proprietary scans and strategy algorithms. TTR Darknet finds bullish entries based on triple stack channel collisions. Money Calendar identifies seasonal patterns with at least 90% accuracy looking back 10 years. Weekly Cash Clock finds short term opportunities that last a week on average. Microcurrency Trader applies Darknet technology and moving averages to cryptocurrencies. Velocity Trader utilizes volume spike and Velocity indicators on custom stock lists. Quantum Scripts scans the markets for momentum acceleration signals and employs Quantum noise filters. Optimal Trader finds directional pre-earnings opportunities that are optimized for entry date, stock movement, and volatility surge. My Trades tracks the profit/loss of your trades, displays stock charts and risk graphs, creates new trades, and edits existing trades. Morning Report provides top 10 option rankings in 6 categories each day.


Stock and options trading has large potential rewards, but also large potential risk.

You must be aware of the risks and be willing to accept them in order to invest in the stock and options market. Do not trade with money you cannot afford to lose.

This is neither an offer to buy/sell/ or recommend a particular stock or option.

Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been actually executed, the results may have under or overcompensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with hindsight.

No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.

Disclaimer of Warranties and Liabilities Tom Gentile and TomsTradingRoom, LLC including employees, consultants, and editors (“Publisher”) cannot and do not warrant the completeness or accuracy of the content found in our areas, or its usefulness for any particular purpose.

Tom Gentile and TomsTradingRoom, LLC also make no promises that our content or the service itself will be delivered to you uninterrupted, timely, secure, or error-free. Under no circumstances will Tom Gentile and TomsTradingRoom, LLC be liable for direct, indirect, incidental, or any other type of damages resulting from your use or downloading of any content on our site.

This includes, but is in no way limited to, loss or injury caused in whole or in part by our negligence or by anything beyond our control in creating or delivering any portion of Tom Gentile and TomsTradingRoom, LLC.

You are agreeing that you bear responsibility for your own investment research and investment decisions. You also agree that Tom Gentile and TomsTradingRoom, LLC will not be liable for any I, investment decision made, or action taken by you, or others based upon reliance on news, information, or any other material published by Tom Gentile and TomsTradingRoom, LLC.

Tom Gentile and TomsTradingRoom, LLC relies on various sources of information that we believe to be accurate and reliable. However, we make no claims or representations as to the accuracy, completeness, or truth of any material contained on our site.

Tom Gentile and TomsTradingRoom, LLC are educational portals, providing content for educational and informational purposes only. Neither Tom Gentile nor TomsTradingRoom, LLC are a broker/dealer. Investors need a broker to trade stocks and options and must meet certain requirements. All securities, futures, and investments data and ideas are offered to self-directed investors. All prices in USD unless noted otherwise.

A full disclaimer can be found here:

Sign Up Now for Free Education!