Swing High

The markets are chopping sideways for the most part today, so far forming an doji on the daily candle. The Financials (XLF), Dow (DIA) and Nasdaq (QQQQ) are showing relative weakness to the S&P 500 index (SPY) today. The VIX is up more than 1% and is above 30. The TICK and TRIN are both neutral. Price action in the broader market indexes seems to be in a consolidation phase today, which is a healthy thing to see after such indecisive and sporadic movements we have seen lately.

A Bearish Pennant patter is forming on the SPY 15 minute chart which could break to the down side. From there, expect to see support at 102. If the SPY puts in a swing low at 102 and re-tests the 108 area, that could be the start of a Head and Shoulders formation, which would be extremely bearish. We will have to trade it as we see it.

Thanks for being a part of Swing-High.com! Always trade with a stop loss and manage your risk appropriately.

Happy Trading,

Jason

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