Intraday Look and Analysis

Looking at the zoomed-out hourly chart of the SPY below, you can imagine how many stops were triggered for longs and shorts over the past week or so. Indeed, we have shaken below and above the key $138 level (breakout point from cup and handle in March) since last Monday. If nothing else, this chart reinforces the idea that cash is a viable position when the market is not offering much in terms of quality swing trading setups.

Currently, the SPY is building on its morning gap higher today. The pattern gives us a sloppy “W” look, which may be some type of a bottoming formation. However, the pattern is just that–Sloppy. Thus, a period of digestion and firming up the chart would be the best scenario for patient longs looking to get involved above $138, assuming it holds.

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