Here we have a 5-minute intraday SPY chart which illustrates just how ferociously buyers came roaring back after an ugly overnight futures session. Just this past hour, in fact, bears had another chance to roll us over.
But as you can see by the purple lines I’ve drawn below, that pattern of price weakness amounted to a falling channel which resolved higher, as we speak. Currently, the chart is forming a mini-bull flag as buyers may very well take a shot at closing us green by day’s end.
We are not out of the woods here, as price swings are increasing and the market, overall, is working off some of the stretched conditions from the past few weeks. The main issue is to continue to see whether dips get bought and pullbacks remain contained. And, of course, individual breakout plays must be permitted to work, in aggregate.
____________________________
