$SPY: BUY Signal
Previously, I posted an article last weekend listing a possible scenario where the market could see some risk-off action early in the week. The scenario ended up playing out. Markets faded some of last weeks action as heavy supply brought us into 432.
It’s time to eye the next trade. Price broke through the 435 gap on SPY. Under 435, it is important to see if supply can be absorbed. Today at 8:30AM, CPI data came out. The open saw some big selling from the initial print. At 10:00 indies caught a bid, and went “red” to “green” taking out the intra-day high, closing strong. Looks like the point of control switched today from sellers to buyers. Buyer finally stepped here at as supply narrowed. Amplified volatility has condensed many trader’s timeframes. Micromanagement is key in this environment. Buyers stepping in on QQQ’s after Apple’s production cuts ‘announcement’ is a positive for the bulls. It shows that selling is overdone and is likely done being priced in here. Shorts are now trapped. SPY could see $440+ shortly.