Everything is risky in this market, you can make money on the pops up and pops down BUT, take your profits quick and cut your losses quicker. The market is unforgiving. $SPY
$SPX As wild as today's reversal was we still closed below the main channel of the year where the heaviest volatility is seen. While we clearly saw bulls defend 3500, the recent past shows us that we generally need to see a local low defended at least twice, and often a lower low
$SPY Yesterday we said that the SPY W-2 of 5 should complete between 365 - 370.
That is exactly what has happened today.
I can not be anymore accurate than these two charts.
JPMORGAN: “.. headline inflation looks to have peaked outside of Europe .. although September releases thus far look to be running slightly above expectations .. Monthly gains in core prices are still .. expected to remain above central bank comfort zones into early next year.”
$SPY weekly chart: on a longer time frame it becomes more obvious what is missing for a bottom. Volume. Instead of volume surging we are seeing volume decreasing as we drop further.