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Assessment: Pretty boring and uneventful week in the market last week…until Friday. Then I expected little action, but SPY finally broke the key support at $445 that had been holding it up all week. Volume was VERY heavy, and that is always a good sign of market participant’s conviction.
Although Friday saw volume and a key move to break round number support, the rest of the week was pretty boring. Looking back, were institutions keeping this market propped up last week and going sideways so they could dump shares…then they didn’t need those props anymore on Friday and pulled them out causing the move down. It’s one hypothesis I am looking at…however, would like to see what happens today for further assessment on what’s going on under the hood.
Let’s see what they do. I wouldn’t take much out of the first two hours of trading, that’s always volatile and wacky on Monday, but let’s see what they are doing this afternoon.
Good luck in your trades!