The 30-minute SPY chart below illustrates the consolidation we are seeing in the broad market after the powerful rally late last week. It is tough to describe today’s action as ominous or bearish when you consider we remain well above the breakout point from last Thursday. As the overall trend is still higher, the bulls still hold the initiative and it is theirs to lose. From my vantage point, it thus follows that sitting tight is preferred over scrambling for shorts.

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