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Assessment: It’s a tug of war between some support in SPY at the $446 area and the resistance at the $450 area. The bears don’t want to get cocky and try busting $446 with everything they have because every time they try to crack the bulls, the bulls smack them right in the balls…and the bears are forced to cover up (their shorts). The covering leads to a new short term high and the bears run off in frustration.
Volume was very light yesterday. On the two red candle days in the past week, SPY volume was 94 million shares and 100 million shares. Yesterday, volume was 58 million shares…that’s pretty pathetic and quite telling as to the bears interest and the bulls interest.
To me this is a day by day market right now. Who’s going to blink and crack the other side? There are not a lot of bears left out there, but usually when you run off all the bears it means the bulls are all-in invested. If there’s nobody left to buy…all that’s left is for people to sell. It’s why the bulls just have zero power to push this higher. There’s not a lot of short covering left to be done.
Good luck in your trades!