Consolidation or Dying Rally?

Let's be patient on the long side.

Technical Edge — 

• NYSE Breadth: 34% Upside Volume 

• NASDAQ Breadth: 33% Upside Volume 

• VIX: ~$25.75

The action over the last few days has been choppy and forced many traders to utter one of my favorite sayings when it comes to price action: “This shit is shit.”

However, we came into the week after a monstrous finish to last week. The goal has been not to give back too much of those profits. The reality is that the S&P 500 climbed 6% in three days and has now dipped 2% in two days. From the low on May 20th, it’s still up 7.6%. 

Game Plan — S&P 500 (ES and SPY), Nasdaq (QQQ), AR, XOM, Energy

We went through a ton of stats over the last few days, most extensively yesterday. If you haven’t had time to read them through, please give it a look! 

I’m not saying that we’re guaranteed the low is in for the moment, but I’m saying that if traders do want more upside from here, they must also realize the market needed to rest a bit after big upside thrusts. 

S&P 500 — ES

I’ll say it again: “This shit is shit” and you’re hearing that a lot from people trying to day trade over the last two days. It’s been a choppy mess out there. But it was the end of May and beginning of June. 

The month-end action can be choppy sometimes. I see it is a reasonable two-day consolidation after a big up-push. 

Again, we did quite well last week. There’s no need to force anything right now; let it come to you and we will keep banking the “mental capital” while we wait. 

From here,