At this point of time I would still be a bit cautioned about buying the dips. However, all the indications from the S&P 500 $SPY and NASDAQ $QQQ chart it looks rather constructive.


1. At point A we had a failed breakdown of 131.20 level which was clear level of support.  Failed breakdowns lead to big snap backs.

2. At point B, we can see that market gapped down on June 27th and June 28th and on both days the bulls took control and bought it right back up.

3. At point C, the utmost important resistance of 136 was breached rather convicingly on high volume on June 29th. Now, some traders may argue that on July 2nd and July 3rd the follow thru days was on lighter volume. But they shouldn’t forget that we had July 4th coming up, hence trading a few days before is usually light.

for $SPY we still have 138.40 resistance coming up. If your looking to intitiate long positions, I would recommend you to wait for either a pullback to 134 which is the gapfill or maybe look for a consolidation under 138.40. At this point of time, markets look a bit extended and a rest or a pullback should be considered as an opportunity to get in long.

At these levels on $SPY and $QQQ I favor the bullscamp, $SPY below 131.20  I will have to revaluate. But as a trader, for intraday trading I am willing to switch to bear camp on a dime.

I am also offering a 6 HOUR POWER DAY TRADING COURSE for new and experienced traders.

My previous Market Calls

If you would like to see how I navigate through these markets intraday email: for free trading room request.

Free Email Newsletter signup


  1. In short, the next few days are crucial. Is Europe fixed? Is the correction over? July/August climbs are very rare, but all indices have broken out of trend in June. SPX will move 20pts (DJIA 200pts) one way or the other in the next few days, then we’ll know.

    • Hi David,
      As a trader, I usually focus less on news but more on price action, it’s easier to manage risk that way. Will Europe get resolved or not who knows. We had similar kinda situation last year too, but we still rallied with most people sitting on sidelines in disbelief. At the end PRICE ACTION is the KING.

  2. Still a short the rally market versus a buy the dip market.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: