Weakness Gives Bulls a Better BTD Setup

Let's see if we can get a dip that sets us up.

Technical Edge 

• NYSE Breadth: 44% Upside Volume

• Advance/Decline: 49% Advance

• VIX: ~$15 (On Friday it hit the lowest level since June 2021)

Yesterday’s 1pm selloff made too much sense. Apple literally ticked an all-time high going into the 1pm time slot — exactly when its WWDC event was primed to start. The SPX, SPY and QQQ were all at session highs too, while breadth was mixed at about 50/50 on the NYSE. 

All of this lined up for a perfect rug pull. 

S&P 500 — ES

I don’t know that it will line up this way, but I would love to see a pullback to the 4240 breakout area, especially if it aligns with the rising 10-day ema. I zoomed out the daily to show the significance of 4242. 

• Upside Levels: 4300, 4310, 4336, 4382

• Downside levels: 4267-75, ~4240 + 10-day ema

SPY

Rejected right off the 61.8% retrace of the bear-market range at $429.61. Now we must wonder if the SPY will fill the open gap down near $423.