The market rejected the idea of a breakdown from last Friday and Monday’s moves lower, and now we find ourselves back in that familiar price range on the SPY we had seen since the middle of May. Oversold rallies in corrective markets can be fierce, as we have seen, and continue on higher much longer than seems reasonable. However, the overall picture is still far from constructive for the bulls. To my eye, the best case scenario for better entry points would be to see a mild pullback in the coming days, forming an inverse head and shoulders pattern, a scenario that I had discussed going back to last Friday. That is a big “if,” and the market is under no obligation to accommodate that idea.
In the meantime, you can see below on that stretched out 30-minute SPY chart that holding above $133 the first nut for bulls to crack. If that proves to be a brick wall once again, you can expect a lot of sideways action at this important price zone.
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Where on earth do you get your photo’s from?! Screamin Semen! Hilarious