— Brian Shannon, CMT (@alphatrends) September 11, 2023
Today’s Chart of the Day was shared by Brian Shannon (@alphatrends). Brain reminds us that the S&P 500 ($SPY) continues to be in a Stage 2 uptrend. In the 1980s, legendary trader Stan Weinstein devised a straightforward way to analyze the market called Stage Analysis. This method classifies a trend into four distinct phases. Stage 1 is the bottoming phase, where price stabilizes and builds a base after a downtrend. The S&P 500 was in Stage 1 at the end of last year and the beginning of this year; however, it transitioned into Stage 2 this Spring when it began making higher highs. Stage 2 is the uptrend phase, the most profitable part of the trend, where price makes higher highs and higher lows. Stage 3 is the topping phase, where price begins to lose momentum before entering Stage 4, the downtrend phase.