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It is funny how headlines can flash across the screens just as the market is nearing completion of a technical pattern. Case in point: Earlier I posted an intraday chart of the SPY forming a descending triangle. Just as price approached the nadir, a rumor flashed about the Greece vote on a bailout being dead on arrival. The market interpreted this as bullish for equities, and we were up and off to the races out of that descending triangle. Of course, another bit of news can come out now, knowing this market, and it will be interpreted as very bearish. So, headline risk is still at front and center.
As we work through the final ninety minutes of trading, I am looking at this morning’s highs as being a key reference point for bulls to conquer if they want to run this market higher into the bell to fill the opening gap lower. You can see below that we are currently knocking on the door at those morning highs.
I would also be remiss if I did not point out the continued relative strength in many of the retail stocks, namely BWS DSW and especially ULTA. I will be looking to build a deeper watchlist should they remain strong.
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