Intraday Look and Analysis: Even Great Parties Need a Pause

On an admittedly very stretched out hourly chart of the SPY below, we can see that price has yet to fully fill the gap from the inverse head and shoulders bullish breakout dating back to early-March. Off of that 2.9% correction, price screamed higher, but then began to churn before recent weakness materialized.

Currently, we tested the lower depths of support (top purple line) before a full-on gap-fill appears to be in the cards (light blue horizontal line).

While it looks like bulls *should* support this level, keep in mind that dip-buyers have not been rewarded this week, which is a change in market character from what we have otherwise seen in 2013. Despite not calling a major top here, I am patiently waiting for better long entries with more evidence of buyers stabilizing charts.

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