Intraday Look and Analysis: Looking for the End of the Rainbow

There is no telling how many days a given consolidation after a rally new to highs will span. Instead, all we can do is judge the nature of the consolidation and digestion as objectively as we can. Currently, the S&P 500 is off just less than 2% from recent multi-year highs, and plenty of stocks and sectors are more than holding their uptrends and breakout points even as they see some profit-taking.

Observing the 30-minute SPY chart below dating back to last Friday, we can see the entirety of this pullback heretofore. Note the potential diamond formation indicating indecision within this consolidation.

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