The zoomed out 30-minute SPY chart below spans the month of July in the market heretofore. The massive “W” pattern should be obvious. The sharp moves in either direction have made swing trading much easier in hindsight than in real-time, which is why letting this dust settle figures to be the correct strategy. However, the market is capable of changing character quickly, and just when it appears obvious that we will keep seeing “four steps forward, 3 steps back…” all of a sudden we are now trending higher.
In order for that to happen, though, the bulls first must stem the tide and merely consolidate benignly or sideways for a few days, instead of sharply rolling over and having to save the day like they have all summer. Pulling back to the resistance area from where we broke out late last week and then holding it would likely do wonders for firming up many promising but sloppy charts underneath the surface.
In other words, the issue is whether this time it is different and the rally will hold much more firmly that the previous multi-day thrusts higher we have seen this summer. The reason why that is important is because the wild swings, or lack thereof, have a direct effect on the technical structure of many individual charts in the market, as at least eight out of ten stocks with the broad market.
Either way, let the market be your guide you to success on this one. When you actually listen to him he is as good a wingman as there is.
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MILF hunter lol
How is it possible that none of your male readers have commented on this one yet? 😉