**These are my thoughts on the SPY (NYSE:SPY) ETF in my Daily Trade Ideas which includes many, many more charts and setups. Subscribe to my nightly Trade Ideas to see the rest of this letter.**
"Success is a science; if you have the conditions, you get the result." – Oscar Wilde
A weak end to the week to be sure but it is likely just a one day flash crash like we saw a month ago.
We will find that out Monday most likely.
Most of the damage was in the high flying NASDAQ while the S&P and Russel indexes held well while the Dow actually rose as the safety trade seemingly picked up.
Banks also did great with rotation into safer asset classes taking place, at least for a day.
The Fed meets this coming week and we are likely to see another rise in rates and then we will be done with those at least until September.
SPY is playing out both scenarios I laid out.
The little bull flag area is holding, on a closing basis, and that’s great.
The other scenario of a quick test and hold of the 242 breakout area was also triggered.
It’s quite bullish to see a test and hold of a breakout area so this leads me to continue to be long biased in my trading and that’s that.