There is not much to say about the intraday action on the SPY, as we have essentially gone flat since the big gap up at the open. Thus, I want to revisit the zoomed out 30-minute timeframe. As you can see below, we did not end up having a precise retest of the key $138 level from which we broke out earlier this month. Whether or not the reason is end of quarter window dressing, the bottom line is that the bulls arrived once again to buy the dip, without much of a dip even materializing in the first place.
Currently, the SPY is consolidating just under those highs from last Monday. Recall the false breakout on the Russell 2000 last Monday, as well. it should come as no surprise that, short-term at least, we are working off some supply here. After the initial supply of the trapped buyers from last Monday is worked off, we will get the true test of mettle as to whether the bulls can continue to make fresh, multi-year highs.
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