Early in the pre-market, SPY is trading unchanged.
Looking at the daily SPY close, we’ve got a tentative breakout just above resistance (black line).
Lower right of the chart shows upward thrust energy has declined significantly … right along with volume.
Yesterday’s update showed longer term momentum (monthly, weekly) for the S&P was pointed up. Continued price action drifting higher is possible.
However, if there’s a reversal in the making, this is a good place to start.
The buyers (volume) have backed off at this level; leaving the SPY hanging just above breakout resistance.
The SOXX, QQQ, and IBB are well off their highs and may be leading the way lower. Our focus remains on shorting biotech IBB, which is the weakest of the three (not advice, not a recommendation)
Charts by StockCharts