SPY/QQQ Plan Your Trade 7-15 Update - Building Support...This mid-day update to my SPY Plan Your Trade video series was probably needed as I'm getting many questions about what I think is happening today.
In short, we saw a bit of a rally early in trading, followed by a moderate pullback. Yes, today's Exhaustion Rally pattern has not shown up yet. But as we learned last week, the price can respond a bit delayed when certain types of events disrupt market trends.
I continue to suggest that the markets are attempting to settle after last weekend's big events. Traders are trying to digest what is happening and where to position capital.
My weekend analysis showed a powerful push in RSP (the equal-weight S&P500 ETF), suggesting capital is moving into a more broad-sector rally phase. I do believe that capital shift will continue to drive future rallies.
But, we also have to get through this week's SPY Cycle Patterns, which clearly illustrate the need for the markets to contract a bit (Wednesday ~ Friday) before moving into a more substantial rally phase mode near the 22~24.
Sit tight. Let the markets settle. Watch this video to see how I view support and why I'm not worried about any potential collapse yet.
Get Some.
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The reality of Fibonacci Price Theory and most Technical Analysis techniques will teach you that as long as the price stays above $559.75 (above Friday's GAP).
Buckle up.