SPY Charts 5/23 This Rally Lacks Conviction

As Monday started it was obvious that we were going to bounce, the questions was how much? Until the end of the week we wont know for sure.  But so far this rally has lacked any conviction in my mind.  I think most of what we saw on Monday was traders short covering nothing more.  So where does that leave us same place we were last week with selling pressure continuing to build the markets are starting to cave in.  Today was a great example of conviction,  the dirty laundry of Europe this morning continued to fuel the fire of Greece leave the European Union and therefor our markets sold off. 

But Brice we had such a great close into the end of the day?  I would agree and it would have been better if we closed up 1.5% on the SPY  but we didn't we finished up .65%  So as it stands the pressure is starting to mount again as we go into the weekend.  It could be that we start to test support again even this week.  Especially if the things like unemployment, China, Europe, and US PMI aren't spectacular. 




 If you find this information helpful you can subscribe to our Smart Trade or our Live Trade Newsletter's. Click here for more details.

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