After a multi-day pullback, you can see below on the 15-minute SPY chart that the bulls are giving it a go at popping us up and out of that falling channel. Skeptics of the rally will argue that a late-summer Friday rally is not to be trusted. However, the fact remains that on the daily SPY timeframe all major moving averages are rising, and plenty of individual stocks had a solid week despite the broad market pullback. The theme here for a while now was the judge the “how” of the consolidation, rather than simply jump to conclusions with sweeping generalizations about the mere “what”–That we were actually pulling in.

Thus far, the consolidation has been of the mild variety, and I have not been shaken out of my swing longs. Until that changes, I am sticking with the thesis that the bulls still hold the intermediate-term initiative.

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