The Closing Print live trading and financial blog during market hours.

Is SPY Trending or Consolidating?

Are the markets consolidating or trending? What are you focusing on lately? Are you fixated on short timeframes? Do you feel like you are overtrading or stopping out too often? Do you step back occasionally and allow yourself some time to examine the big picture?

Renko Charts – Trending or Consolidating

Renko charts do exactly that by focusing on price. Time is irrelevant. The result is a picture of the current state of the markets, in the timeframe for which you are trading.

Renko Daily is Consolidating

On the left side of the chart, price action was trending from 2013 through 2015. The first shaded rectangle identifies consolidation. Price action then started trending again from 2016 through 2017.

SPY Renko Consolidation

The current consolidation is evident. Attempting to trade as you did in 2017 will only lead to frustration.

As price action consolidates, we seek confirmation of distribution or rotation.

Lately, it seems we have been going through sector rotation. TICK cumulative, in the lower panel, is trending. The net effect is more buying on the uptick on a “cumulative” basis compared to selling.

SPY Daily Rotation


The task now becomes, identifying emerging trends. Where is money flowing?

Tune in today as we broadcast via LIVESTREAM during market hours. We’ll discuss these topics and take some trades if conditions permit.

Happy Trading,


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