The action over the last few days is exactly the kind of market you don't want to be in, of course planning positions and so forth, yes, but this lateral chop, no. However it is a sign of distribution.
Price is moving toward the earlier area I mentioned for the SPY specifically, but really applies to any average, industry or stock with a defined area of resistance.
For the SPY, the mark is north of $146.37 which we are close to.
We do want to see negative 3C tone in to the move...
The 2 min chart
The 5 min chart, yo can see the divergence clearly and imagine price at a new high, that is an even stronger divergence and will likely see this chart move even lower.
Intraday on the 1 min, it's negative, but we may see some pullback.
This is the first time since we have popped that ES has really been negative through the day.
ES 1 min negative divergence, so tone is shifting, the market is moving to where we need it, so far so good. We are moving closer to low risk, excellent entry, high probability trades.
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