The SPY broke it’s channel here today and I should have held longer my shorts. We are oversold here but things do look like they want lower. I’m looking for a bounce very near $160 here now.
It’s always tough to trade in the first 30 to even 60 minutes as moves are often fakes unless markets are strong or other select situations which I’ll talk about when I see them.
Those situations are not present here now.
We’re pretty oversold here so new shorts are a tough trade to make. It’s likely we will see a bounce soon before we can setup for a move lower to test the breakout levels at $160 and $157.50 in the SPY ETF.
Closing on the lows for the SPY isn’t great though as we could well continue lower to the 50 day near the $160 level before we see a bounce.