SPY Bumping Up Against Resistance
The post-election drop in the markets has been swift, but should be no means a surprise given the series of lower lows and lower highs on the S&P 500 below. The 2 day rally we've seen has been impressive, but no match for the selling we've seen (so far). I rather expect a dull market throughout the rest of the week and don't really see myself taking any trades as I try to avoid choppy, low volume trading. In other words, now is time to catch up on some reading or whatever you do when you're not trading because preserving mental capital is just as important as preserving your trading account. That way you'll be clear, focused, and ready to take advantage of trades when they do set up.
The VIX is nearing it's lower wedge pattern and that is not a good set up for the overall markets. One more thrust lower on the VIX and I expect the markets to be under some serious pressure. My dates for this dead cat bounce to end and the primary trend to reassert itself are between the 26th-28th, meaning this week is essentially a write off, as most Thanksgiving weeks are.
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