Almost as soon as I hit send on yesterday’s post of the updated charts below, the market rallied nicely. Today we are back to choppy trading in nearly the same spot. The $XLF remains the primary concern as it appears to have made another lower high above the critical 12.80 level. If the XLF downtrend line is taken out and the recent lower high is exceeded it could lead to a squeeze, dont’ get complacent in either direction here.
Action in $SPY $QQQ $IWM is more neutral as the market awaits some kind of catalyst, what will it be? Until we have a resolution it seems best to continue with a cautious stance and the light volume suggests that is the consensus. Which brings up the the thought that when everyone is waiting for something to happen and it seems boring, that is often the time to be most alert.