The intraday fade we have seen off the psychologically-significant 1500 level on the S&P 500 Index has many thinking we are in the early stages of an overdue correction. While uptrends are notoriously difficult to time in terms of nailing a top, I have still been a net sellers and locking in gains inside 12631 of late.
When we look at the updated 30-minute SPY chart below, you can see the past few weeks of action have not been kind to shorts.The previous dip was aggressively bought last Friday, and so far this fade is not so damning.
Nonetheless, avoiding complacency is key when the market has been floating higher for days on end. As a result, I am keying off of this timeframe to see if a lower high is made here that gets sold hard. If so, we might very well be on our way to that much discussed pullback.
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Agreed!