S&P500 Just Shy Of Back To Back Inside Days
The $SPY kicked off the week with an inside day on Monday, finishing up 58 cents and directly in the center of Friday’s range. In today’s session we just slightly poked our heads below yesterday’s lows by 4 cents before reversing higher and closing in the center of Monday’s session.
We technically can’t call this back to back inside days by a textbook definition, but I never have subscribed to analyzing price action in such black and white terms, so for all intents and purposes, I’m labeling it as happening in my mind.
What does it really mean?
Back to back inside days are rare occurrences, but all it really signals is a temporary dry up of volatility and a time to stay on alert for increased volatility and expansion out of this range, which in this context, means a deeper pullback or a surge to new all time highs.
As I wrote in our closing note to subscribers, it’s a time to sit on our hands and hold off on new exposure until we see more of a resolve.
Hope this helps, and good luck out there!
By the way I’m holding a webinar next Tuesday at 1PM EST where I’ll be discussing trading setups & strategy. Open to all for free with a signup here.
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