We know that the major indices are down slightly and drifting around without much action. So, let’s pull out a bit and observe the SPY‘s 30-minute timeframe. Since Friday, we have been consolidating sideways. The two main types of corrections are through price or through time. In recent weeks, bulls finally got what they have been wishing for all summer with a mild correction through time that eventually resolved higher (Recall earlier in the spring and summer when swift price corrections were the norm, frustrating bulls looking for sustained breakout).
Thus far, we look to have another correction through time on our hands. There are no guarantees that will stay the case, but if that channel below holds it appears that quiet consolidation is quickly becoming a trend in and of itself.
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