Intraday Look: I’ll Say it Again

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On the 30-minute timeframe of the SPY, you can see that the market still has room to drop down to even so much as retest its major breakout from earlier this month. We have basically been stair-stepping lower this week, via morning gaps lower and subsequent churn. Again, a retest of the cup and handle neckline is not inherently bearish, provided that the $138 level holds on a closing basis. Because it is such a major level, the presumption is that it will hold initially.

In addition to the broad market analysis, I am noticing that plenty of issues seem to be drifting lower on mild volume. In other words, this pullback appears to be orderly, which is what patient bulls wanted to see. I am not in a rush to step in and declare the pullback over, though. As I noted last night, I am willing to let this play out as I notice stocks taking a well-deserved pause.

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