As we work through today’s final hour of trading, the 30-minute SPY head and shoulders top we have observed all week has served us well in avoiding the market danger many traders are currently facing.
This remains the controlling pattern on this timeframe until proven otherwise. Given the market’s change in character in suddenly punishing dip-buyers harshly, I am in no rush to time a tradable bottom, just yet.
Perhaps a sizable gap lower tomorrow morning might suffice for a tradable low. But that might be a too obvious at this point. Best to protect capital and play defense as this broadening correction plays out.
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