SPX still has a blue bar indicating it is outside the upper Bollinger band and is extended. The futures opened above yesterday's high, but quickly sold off. They made a slight new high at 10:00 and sold off again. They rallied above yesterday's high again in the afternoon and again sold off. That was three different times the market tried to follow through from yesterday, but failed to get it done. Buyers were a little shy to push price today. The all important COMPX closed slightly red on the day. Today did not confirm yesterday's break out. Lets zoom in to the SPY 195 minute chart.
Volume diminished today considerably. That last bar today had extremely low volume. The last three bars have closes in relative proximity to each other. Not much going on there. After SPY climbed back into the price channel in Jan. it went back and tested that lower trend line before continuing the rally. I would like to see some kind of test like that or some significant upside follow through that would confirm the break out. With the expanded volatility pattern I would interpret a drop back below the lower channel line as a pretty bearish event.
Today did not tell us much. Will the break out follow through or fall back to earth? Stay tuned.
Chart practice has been updated with WYNN the stock today.
http://traderbob58-chart-practice.blogspot.com/
Bob
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