Monday Morning Thoughts for SPY
The markets have recovered from overnight weakness, as futures hover near Friday’s close. Spy is flat. IBD50 stocks were strong.
Renko has been range bound since January. Recent price action is building white bricks, therefore until we see red bricks we can assume the longer term trend is still intact.
SPY also strung together 6 straight weeks of gains by mid-week, only to fall victim to selling on Friday. Despite Friday’s news driven profit taking, the markets still look very strong. August seasonality aside, price action is reflecting the majority of S&P 500 companies beating sales and earnings estimates for the quarter.
TICK Cumulative – SPY NYSE NDX
Both the S&P500 and Nasdaq showed institutions buying more than they were selling.
The caveat remains with CPC , fear and the put call ratio. Though it is near the green zone, we wouldn’t be surprised to see a pop.
Stay cautious this morning and wait for the Opening Range.
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