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Assessment: The market continues to be volatile, but the key pivot I discussed two weeks ago did hold as support recently. We saw SPY 494.18 get broken on a gap down, but then price recovered. The next day price sold off and basically used the pivot level as support. The following day we gapped down again to a hair below the 494.18 pivot and launched higher. Since then the market, visualized through SPY, seems to be bouncing between 520 and 540. For the Elliott Wave theorists out there, it does look and act like a Wave 3, and if that is the case we likely have lower prices ahead…which will push to potentially as low as SPY 460. The hardest question, which is why more people aren’t traders, is when that break comes. Does it suck in some bulls and get bears to cover and then BAM…out drops the floor and we crash. Tough to say, but I will keep my ear to the ground for clues. Volume continues to be strong. Perfect setup would be a push back to 550 to 560 and then the waterfall selling occurs. Let’s see what hints drop.
SPY Chart: https://sblk.io/s/N7n7FXTyCgIdCld
Good luck in your trades!