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| Gator's Chart of the Day: SPY |
Wednesday was an inside day where the entire candle (even the wicks) was contained by the body of the preceding candle. Volume was above the 50 day moving average but well below Tuesday's big down day. Price never did get above the 50 day average and we closed below the 1370 level that many see as important. It didn't even close inside the Bollinger bands. (Bottom band = 137.10)
The market leaders like AAPL and PCLN were down and CMG and IBM closed near their lows. I wouldn't even say this was a dead cat bounce. Dead cats are livelier than this market. The Beige Book report makes it unlikely that Ben will be acting anytime soon. Besides, he needs to save a little something for a strong pre-election sprint.
We may move higher from here but that could just be construction of a right shoulder and that would suggest a move back down to 127 or lower. (Trust me on the neckline.)
This is the kind of action that can just chew up traders trying to build positions.
In case you didn't recognize it I'll tell you that was the voice of experience.