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Looking at a 30-minute updated chart of the SPY (actively traded ETF for the S&P 500 benchmark index) stretched out all the way back to June 1st, we can see that the angle of descent in the sell-off tapered off around June 10th. After that, price has attempted to stabilize in a sometimes violently indecisive manner. Today, the bulls are pushing up against prior highs over the past two weeks.
Currently, price is consolidating its big move intraday in a rather orderly manner, just under this prior key resistance area, not to mention the declining 200 period moving average on this timeframe. Looking at all of these factors as objectively as possible, the bulls have an edge here, especially if they can breach those prior highs. Regardless, and consistent with the “going to the mattresses” theory, we stopped going down once we ran in a virtual straight line to a major price zone. After choppy sideways action, we have now seen progress to the upside. Thus, the bulls hold the short-term initiative. Also note the increased buy volume starting on June 16th, which had previously been tepid for the month.
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