Are we at the end of another bear market rally similar to what we’ve experienced numerous times sine early 2022. Or, is a long-side reversal still in the cards?

In January, we printed the second shoulder of an inverted head and shoulder, resulting in a bull move in SPY above the descending trendline. The bulls roared.  However, last week the market took a hard reversal at horizontal resistance and here we are – do we move above resistance or resume the move down?

The next 5 days will be flooded with market data and I’m not comfortable.  I could be totally wrong, but I took most of my positions off of the table last week.  Regardless of the direction, I’m happy with taking the profits. I’ll limp back in this week if short-term overselling takes place, but who knows.  Let’s see the data.

SPY Daily

Inflation will take center stage on Tuesday and the street is looking for a 7th monthly decline.  All hell will break loose if it’s 6.5% or above.

source: tradingeconomics.com

This week will be packed full of market shaping data and as a 50 year old investor, I have to preserve capital more than gamble.  Don’t risk more than you’re willing to lose. Trade’em well.