The updated hourly SPY chart shows that after this morning’s thrust lower and reversal upside, a fairly significant battle is taking place as we speak. We have seen countless bear traps spring to new highs over the past few years. But if shorts can press back under $185 they may have something to work with.
Overall, I am in wait-and-see mode this morning before pouncing on anything. Try not to get caught up in the exuberance of the bounces and the gasps of the swoons–This is all part and parcel of a corrective market. The larger issue is whether the tape can avoid a major breakdown here or instead at least stay rangebound and firm up.
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This is starting to feel a lot like a replay of 2011. The market has no direction, only whipsaws.
Fair analogy.