This market...
10 weeks of down, up, down, up on the weekly chart of SPX, despite the market pushing much lower during the last three weeks, is nonetheless making it very difficult to short for any length of time beyond a day-trade. Then sprinkle this sell off with massive gaps in both directions.
Over the last three weeks, SPDR S&P 500 (NYSE:SPY) has gapped at levels that hasn't been seen in years. And take the last six days, you'll find that those gaps are equally split between the upside and downside.
So there you have the market conundrum that is testing the mind, will, and patience of even the most experienced of traders. Not to mention the fact that the gaps up and down represent over 80% of the daily price action.
So, I don't have a desire whatsoever to buy this market here until there is a 'higher-high' that can be formed, and the only way that can happen is if SPX can break above 1993. If that happens, then then bulls might have something to work with. Until that happens, the bullish watch-list below won't be heavily traded by me.
Here's the bullish watch-list:
