As you can see on the updated 30-minute SPY chart below, the market continues to work off last week’s sharp rally higher to start off the new year. The action this week has been met with a healthy dose of bearishness as well as boredom on the part of traders. In other words, I do not see everyone in a rush to buy this dip yet.
Into the bell, I am looking to see if last Wednesday’s intraday lows (upper blue line below) can continue to hold as first level support. The longer it holds, the more this is looking like a bullish in nature consolidation.
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Thanks, Chess.