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SPY: Is The Correction Done?

Published 10/14/2013, 02:10 AM
Updated 07/09/2023, 06:31 AM
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“Be who you are and say what you feel, because those who mind don't matter, and those who matter don't mind.” Bernard M. Baruch

Another strong day Friday but I still think this is a dangerous market in which to be too active with news on the debt ceiling long or short-term extension around the corner.

To me it seems like it’s a buy-the-rumor, sell-the-news event but only time will tell.

I just find it hard to believe that after putting in a nice top and then dropping sharply on heavy volume that the correction is done with.

Who knows though and I really have no opinion other than what I stated above but my conviction can change and really I have no conviction here since I’m mostly cash with only a gold short position on.

Let’s dive into lots of charts, starting with the index charts.
SPY Daily
SPY had another solid day on the upside Friday, but the lack of volume is always something to take note of.

The $170 level would have been a buy point but on such light volume there is no way I’d be long here.

I’d expect a move back under $170 today, Monday, and then we will see if we are going to correct deeper or if we will consolidate for a couple of days before we power higher with more conviction.

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