The fascinating aspect to the enclosed SPDR S&P 500 (SPY) chart is that the pattern continues to exhibit a series of lower lows and lower highs, despite intervening powerful recovery rally efforts of 1.2% to 1.8% off of each respective low since Monday morning.
This is very perverse action because it gives the illusion that “buying-the-dip” is still a viable strategy, yet the fact is, the SPY is in a dominant near-term downtrend.
Unless and until the SPY can claw its way above the prior rally peak at 17.81 from yesterday’s, the downtrend will remain intact, and false hope on the upside will continue to be problematic.
Today’s last hour of trading will be extremely important, especially if the SPY cannot hold or extend its early recovery.
Also because end-month selling just might be a factor.