In one fell swoop with this morning’s gap lower, price fell back inside the trading range we had been in after the July 6th gap. That said, the market is well off its lows today, and my longs are either in the green or down slightly. However, as I have been mentioning, heavy cash is still a powerful position in this market.
The 30-minute SPY chart below is a reason to not yet get giddy about a comeback by the bulls. You can see the potential for a bear flag building. Should price resolve lower out of this pattern I will respect it and likely raise even more cash.
______________________________________
REITs/mortgage strong as you mentioned on weekend “truckin” – such as ETF REM – and its holdings.