The 30-minute SPY chart below encapsulates this entire week of trading heretofore.
Bulls will argue that we are working through the right shoulder of yet another inverse head and shoulders pattern ready to trigger to the upside. But the fact is that we have seen an awful lot of activity without much accomplishment this week, in terms of alternating days where bulls or bears appear to be in control. Bears will describe this action as toppy “churning,” and indeed may be a sign of dip-buyers slowly losing their initiative that they so clearly have had in 2013. Of course, short-sellers would need to first hold below 1548 on the S&P 500 Index, which they could not do despite a close under it yesterday.
Into the final ninety minutes of trading this week, I am looking to whether dip-buyers continue to exude confidence, or instead display some doubt about holding longs through the weekend.
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