SPY Charts 5/21 Patience Is a Virtue

Well, after a weekend the SPY has done its job we are gaining some traction starting today.  Please do not mistake me for bullish,  I said traction, how I would equate this is to someone falling down a steep hill and finding a small vine to cling to only to pull themselves up slightly and then lose their grip and fall further.

We didn't have any big news out of Europe over the weekend so right now we could be like a boat in the middle of the eye of a hurricane its just passing through so it will mostly likely be calm this week.  Most traders are mostly likely taking profits on their shorts and puts last week.  There maybe some little plays here and there on relief rallies but you will see volumes pretty low this week because of the holiday weekend.



In fact this week feels like it did last year this time.  We had a very nice little rally into Memorial Day Weekend last year only to end out behind the woodshed getting a beat down.  IT was a 2% in one day last year that set the table for the week after Memorial Day.

Its best to be cautious and patient this week most traders are just waiting for the rally to end and then pile in with the rest of the bears take hold of the market again.

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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives