5 Day Moving Average Market Gaps

The $SPY has experienced a number of gaps above the 5 day moving average after closing below it in the last three months. In each instance where the gap took out a short term resistance level and held above the 5 DMA for the day, it lead to continued upside over the following sessions. I have not crunched the numbers and do not believe in buying based on statistics, I believe each case is different, but it is definitely worthwhile to know when there is a possible edge such as this. The comments on the chart were posted by me in the Alphatrends chatroom just before the open (time noted is Mountain time) Alphatrends has a daily chat where the focus is on money making ideas, we don’t have a lot of meaningless banter, but we do have some fun! Take a trial and see if it is for you, I will be announcing a special deal for new subscriptions next week.