Daily update

Quite a week we had.  This may be the first time in history that people got excited that banks need a bailout.  All I heard the last few days is that Europe will bail out the Spanish banks this weekend.  I don't know whether that is going to happen or not, but I am pretty sure the market has priced it in if it does.  If it does not happen, look out below.  There may be a sell the news reaction even if they do.

Lets start out with the daily chart.

I have added a new red line here connecting the highs of the last two weeks.  The market may have trouble with that line next week.  The volume pattern leaves a lot to be desired in the upside conviction department. 
How about a look at the 130 min. SPY chart.

Now that we had a pullback we got something to make a lower trend line to mark this up move.  Until we break that line it is still dip buying time.  Just keep in mind that until we conquer that 5/29 high, the market is vulnerable.  If we end up turning back down from here it could go down pretty fast.  .

Bob