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$SPY has not closed beneath the 50 day sma in 27 trading days. This is our line of support.
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The 50 RSI on the daily chart has been our support level as well these past 27 days.
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With about a 3% return in $SPY this year the risk of long equities has really not been worth the exposure. This is currently a swing traders and day traders market.
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This year buying weakness and selling strength has been the best strategy. Trends have been very short lived.
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The wrong sectors are leading this market higher setting up the risk of that long over due correction that has still not happened.
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This is a range bound market currently.
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Financials and momentum stocks are not leading this market higher. That is a sign of an old bull market
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This market is rewarding the wrong things, buying and selling quickly, cutting winners short, and buying falling knives.
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Trend followers are having a bad time along with break out traders which is not healthy for a bull market.
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Traders with quantified entries and exits that have an edge on a short term time frame are still doing well, traders that are over trading and letting daily price movement effect their emotions and sentiment are probably having a bad time in this chop.
Via Mr. Break Out — >
