“The SPY is Falling”
We find ourselves a bit disappointed this morning. SPY was falling, so we anticipated further downside and a possible retest of the February 9 lows. Instead, we have SPY showing strength. And, to be clear we have been watching for a fade of the high of the day for the past week. This could still be the case, so caution is warranted until our indicators say otherwise.
The 130ma (half year) moving average is delineated as red. With RSI yet to reach oversold, we were anticipating the 258 to 260 zone this morning. That is still possible if we see a fade of the highs again.
TICK cumulative, a “real-time” representation of institutional sentiment turned lower.
SPY Pre-Market Session
The pre-market session is giving us mixed signals. We should still anticipate a fade of early morning strength during the “Opening Range”.
In addition, have a chart of junk bonds (JNK) open for reference.
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