The 5-minute chart of the SPY below indicates that this morning’s weakness is sticking. Price has been working through a long, grinding, and boring base since the opening twenty minutes of trading. Dip-buying has been muted, and short-term momentum plays are sparse. I expect the bears to make a strong attempt at breaking us below $139.60 this afternoon for a trend day lower.
Of course, timeframe and context are crucial. Overall, this pause is relatively tame and on light volume after last week’s sharp rally in the broad market. For swing traders, the idea is to let this short-term consolidation work itself off, hopefully setting up buy points for another push higher later this week and beyond. You are looking to see a number of sectors start to emerge with strength, including those that have been lagging for much of this year.
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Nothing has lagged like the OIH so far this year. It is showing strength today, relatively speaking.
Yeah. I’ve been looking for a reason to get involved with them for a while. Hopefully, soon.