Today I look at the dead action of the SPY. We fell down around 0.2% on the S&P but the volume just wasn’t there. Even though the fall accompanied by some volume came in late action today, it looks like we are forming a bull flag and the 898-899 level will be where most bulls will pile in. I do not recommend going short until we break the 200 SMA 10 minute which sits around 896, and maybe even potentially going long at 898.50 with a stop there. The bulls can take this market up higher to the 940 level which will coincide with the 200 SMA once the financials join the rally, as they seemed to be lagging today, after a spectacular day yesterday. The dead volume, reminds me a lot of the rally towards january 6th, where we topped out on very little volume to push back lower. I also look at the XLF, GS and SRS.
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