The S&P 500 remains in this weird holding pattern

The S&P 500 (ETF Proxy – AMEX:SPY) remains in this weird holding pattern that has become the norm recently after a big POMO rally.  I would expect to see price drift down to the 20sma (blue line), then whipsaw back to the highs before price can truly correct.  It remains a market without much interest until we break free from this tight range.

 

 

 

 

 

 

Home Depot  (NYSE:HD) is about to break out to the upside without much power or trend sponsorship.

As I stated last week, I am stalking an entry to the short side as any breakout given the weak power is highly likely to be false and unsustainable.  I will be watching the daily chart for a candlestick reversal bar, and will put my stop loss orders above that price pattern for a “double dip” short trade with a profit objective in that same $94.50 area.

 

 

 

 

 

 

This week, Chevron  (NYSE:CVX) filled its breakaway gap, tested the resistance offered by its 10sma (yellow line) and turned lower.  I would remain cautiously optimistic and expect to see price break down to a new low, but would trail stops down a bit to just above the recent $114.95 highs.

 

 

 

 

 

 

 

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