The markets posted modest gains for the day with the exceptions being financials and small caps. The financials (NYSEARCA:XLF) finished up almost 3% today. The Russell 2000 (NYSEARCA:IWM) finished up .9%. The TICK spent most of the day around neutral but finished relatively bullish. The TRIN was bullish early in the session but chopped around neutral from 11:30 to the close and finished pretty much exactly neutral.
SPY is breaking out of its down trend on the monthly chart, which is bullish. From here we need to see continuation of the breakout or a bull back to support. Otherwise, the down trend could continue and this "breakout" could be a "fake out"... a fake out break out (aka FOBO). The more technical term for such price action is a Jab. Time will tell.
I am personally still sitting out. I may start picking up short positions again, but I do not see that happening this week or even the week after. I will certainly keep you posted. Also, I am in the process of developing a better trading strategy to fit my personality.
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