Looking at the SPY, we have seen a pattern of ebbs and flows while the S&P continues to make a series of higher highs and higher lows. You have to be very careful about initiating new longs at the top end of the range where we are right now, as the market has a very crafty way of pulling back off those highs. In fact, we’re starting to see a bit of that pullback starting in the SPY on the hourly chart. Keep an eye on the doji candles, as those have seemed to signal changes of direction in the broader market. I do expect that the market could stay in a very tight range over the next days as we continue on with the two-day Fed meeting.
Looking at Apple, it’s been very difficult for a trend trader because there really hasn’t been a trend. It’s very difficult to be long at the current $610 level heading towards the $620 resistance.
Overall, there has been a lot of violent movement, but not a real trend. Keep it light, keep it nimble. Don’t chase price and focus on the best setups you can find.
By Evan Lazarus
Disclosure: Evan Lazarus is flat