**These are my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups**
“Half of seeming clever is keeping your mouth shut at the right times.” Patrick Rothfuss
An interesting day with markets starting to show a bit of a bearish pattern here but that can quickly be cancelled.
Stocks rested after large gains yesterday while some soared and some recent leaders tried to breakout but failed like FB, while TWTR is taking a much needed correction.
TWTR will likely take a couple months to setup a nice new buy point.
Let’s check the index charts to begin and see what I’m talking about in terms of a mixed bag now.
SPY looks to have a bear flag here now as well as a flat channel. Only time will tell which one works but any correction should be shallow in this strong uptrend we remain in.
A move above the $184.20 area is good and would be a breakout and great, while a break of the bear flag would be a heavy signal to be reducing positions and locking in gains.
The early weakness was a bit hard to sit through but we held and ripped back higher.
Often bull markets are weak early and strong late in the day so until we break the bear flag I have to remain biased to the upside.
We are not overbought, just neutral now, so we could go either way.
Stocks remain my focus, not trading the indexes.
Enjoy your evening, Friday and weekend.