Not much has changed on our 30-minute SPY chart since two weeks ago, when we first saw a bullish inverse head and shoulders pattern taking shape. Since that pattern was triggered with a powerful rally last Tuesday, it has been a slow and steady grind higher for the indices, without any real shenanigans that we saw in the devious type of tape for much of 2011 and 2012.
Volatility appears to be abating, and focusing on stock and sector rotations remains at the forefront of my strategy in lieu of trying to call a top to the market. The S&P 500 is one good push away from hitting its 1565 projected target from the inverse head and shoulder pattern.
Let’s see if it continues to be a gentleman’s duel, instead of something more nefarious brewing.
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