_______________________________
You can blatantly see that, by and large, the mentality of traders in real-time on Twitter has not changed. It is still much easier to quickly turn bearish or highly cautious on the slightest bit of weakness, rather than stick with the prevailing trend. Eventually, the bears will be correct and we will see an extended correction or even major top. For now, though, there remains little evidence on an intermediate-term timeframe that we are topping out. If you caught the daytrade shorts in the metals today, then that is a great job there. Otherwise, the more important thing to look at is the action as objectively as you can.
It should still be obvious, despite this morning’s shenanigans, that we are in an overall uptrend. On the 15-minute chart of the SPY below, you can see that we did slightly take out the lows from Tuesday, but more importantly we have held above the “neckline” of the V-shaped move off the Monday morning gap down. On the S&P 500, that translates to roughly 1365, and I am looking at that level as a short-term reference point.
Psychologically and technically, holding above that level of the Monday morning gap down combined with the fresh wave of bearish sentiment that comes with these intraday moves lower is likely to only serve as the impetus for another move higher.
_______________________________
