The hourly chart of the SPY, below, illustrates that the month of April has been characterized by one wild price swing after the next. Of course, the bulls possessing the multi-month trend continues to move the needle in their favor, enabling the market to turn on a dime and sprint higher when necessary.
Nonetheless, as we head towards May and the summer months and currently come to terms with all-time highs set earlier in April, the issue is whether this violent indecision, in terms of wild price swings, will abate for a healthier trend trading market, or instead if we are forming a larger top in front of your standard seasonal correction.
I suspect the action the rest of this week will be telling–Avoiding another sharp rollover would be a big step for bulls, as would more breakouts holding and persisting their upside moves on individual charts.
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