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SPY Thoughts: 2 Steps Forward 1 Step Back

Published 09/27/2013, 03:02 PM
Updated 07/09/2023, 06:31 AM

“When you say “It’s hard”, it actually means “I’m not strong enough to fight for it”. Stop saying its hard. Think positive!” - Unknown

We saw some early strength all across the board Thursday before weakness came back in many areas.

We saw positive action in the indexes but certainly nothing to write home about of anything that has changed my view that we still have some lower to go.

That said some of the setups we posted past night like E-Commerce China Dangdang Inc, (DANG) did work very well from the breakout level.

With markets showing weakness still, be aware as breakouts are prone to failure still.

Let’s take a gander at the index charts to begin.
SPY
SPY is now building out it’s right shoulder from a short steep little head and shoulders pattern that we see so often here.

A move under $169 can now be shorted and it looks like a move to $166 is more and more likely here.

That’s not necessarily a bad thing in the long run though.

It’s been 2 steps forward 1 step back most of the year and the best ways to make money have been to identify bottoms and get in early rather than buy breakouts in terms of the SPY ETF which represents the S&P 500.

We are still on track for an excellent finish to 2013 and a great year overall.

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