We are still observing the orderly consolidation in the broad market after the powerful breakout late last week. The 30-minute SPY timeframe offers a glimpse into the mild giveback thus far. While it can be tedious to sit through a rather boring market when it seems like you should be printing money on your longs (or shorts), stepping back and observing the bigger picture is critical.

When we do that, we see that demand remains strong for equities, as even after powerful rallies we are not looking at a sharp price correction. True, that can always happen at any given time, but the harder the bulls fight off the price correction in lieu of a modest time correction, the more bullish the market tends to be going forward.

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