On the back of yesterday’s post, those trendlines extended on the SPY 30-minute timeframe indicate we are back down to a price area where buyers should present themselves.
The overall gist of the price action here is we remain in a relatively contained correction since mid-September, with the S&P off as much as 3%, while the Nasdaq is down 4.2% from recent highs. A 3-5% correction is usually seen as constructive within a healthy overall uptrend.
Continue to keep an eye on emerging sectors, such as energy and the materials. Instead of trying to time every short-term top and bottom during a consolidation, I am far more focused on capital flows into various stocks and sectors.