When it comes to SPY right now, if you’re bullish you are likely to be in one of 2 camps: The ones who are waiting for a pullback to get in, or the ones that are already… well, actually, there’s really only one camp. At least that’s the way the big institutions were looking at it on Friday. Overall volume dropped a whopping -16%, and HG (our Heat Gauge) gave us 3 zeroes in the past week, so there seems to be a consensus among both bears and bulls to wait for a least a little bit more action.
So if everyone is ready and waiting, does that mean we’re about to drop like a rock? Anyone who’s been doing this long enough knows that the market doesn’t care much about its participants, and does what it wants when it’s good ready. The Nasdaq managed to squeeze in an accumulation day on Thursday, so the foot is still firmly on the gas for the long haul.
In the near term, however, over on IO (our Issues Oscillator), 2 straight days of the same value could mean that the wheels are starting to turn. Consumer confidence, Beige book and the jobs numbers are potential earth movers coming up, so we may indeed end up getting the SPY 240 test and gap fill that everyone wants. -MD
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