The 10-minute chart of the SPY below is stretched out a few days to show the sequence of this week. The short-term overheated nature of the tape carried over into this morning’s mini-pop at the open. The subsequent pause is not all that surprising. The issue is whether the indices can work off the froth by grinding sideways while individual trading in many names continues with the festive holiday theme for bulls.
So far, we are seeing just that in lieu of a completely rollover in the market. As a result, I am focused on stocks performing well, rather than obsessing over each tick in the major averages. Indeed, traditional holiday trading dictates as much.
__________________________
