The only sense we’ve made out of this market is to go reversion to mean. At the bottom of the range today we had many support longs trigger — and they worked. Last week bulls excited for break-out got killed on the reversal. Range trading at its best.
For tomorrow we have a nice mix of resistance shorts and support longs – traders are confused, investors are confused, politicians are confused, everyone is confused. And when everyone is confused they become weak holders, thus reversion to mean reigns. One day we’ll leave this large multi-month range but until then either stay in cash or shorten your time-frame.
$SPY broke the range lower only to reverse into the afternoon and close over trend-line. Ball is still however in the bears camp until the bulls distance price away from bottom trend-line.