Returning to our 15-minute SPY chart going back to Tuesday, you can see that we remain in a short-term consolidation. Moreover, that symmetrical triangle has seen a shakedown, retrace back up to the broken support trendline, and is not grinding sideways just under this morning’s gap. It is important to remember that chart patterns can and do often morph into larger consolidations/patterns.
Thus, the larger point to consider here is that the market is so far mildly consolidating its recent gains. It would be only if the bears can start build some momentum down and away form that broken symmetrical triangle that we would look for a deeper pullback. Until then, waiting out but closely observing the summer doldrums as charts try to firm up is likely the best strategy.
3 Responses to Intraday Look and Analysis: Patterns can and Do Morph
Sure looks like the sellers can’t gain control, but the buyers aren’t getting all excited either. Standing aside until we do one thing or another.
whatch’all buyin’ and sellin’ anyway?? irrelevance? stagnation? inflated deflation? obsolete economic theory? economies of remorse and amelioration? futures of ends? restarted beginning’s on the streets.
..I hate to say it, but it already happened