Oh wow! I didn't notice that, but I usually trade 1 hour minimum. Nice catch! I'm definitely a SPY bear right now for the short term (1 to 3 months). Unless something changes on the trade war in a positive way... which I don't think will happen. Fundamentally, everything is overpriced (S&P about 36% overpriced), trade war is uncertain, yields are plummeting, and most economic indicators are contracting. Technically, the top of this consolidation on the daily and 4 hour sits right at the 61.8 fib level from the all-time highs, and this current pullback off the lows is hovering around the 61.8 fib level from the top of the consolidation. I'm keeping an eye out for a consolidation break, and my bias is to the downside.
merkd1904
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@JayC81, Same. We need a break down through $282 with conviction to get the party started though. Without any catalyst i see us ranging in this $285-$291 area for the rest of the week honestly. Volume was like 55% the 20 period average today. We're coiling up for something though, my bias is also down. Fundamentally without any REAL breakthrough on the trade front it'll stay that way.
Bankuur
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@merkd1904, Agreed! This consolidation will stay a consolidation without a geopolitical catalyst... I'm not even sure a rate cut can cause a breakout.
yenle0290
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Wat does this mean? Higher chance of gapping down tmr?
Shiloh777
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Thanks. Hope the neckline breaks overnite.
merkd1904
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@Shiloh777, With the type of clown shoes market we're in right now trading off tweets i don't hold much faith in technicals playing out. But we'll see.