Hello Traders, so it looks like the most anticipated day at the Jackson Hole was not as important as everybody thought. I mean we did get our rally, but as far as the hype goes. You can throw that out the window !! Now its time to get back to business. I have highlighted a weekly chart of the SPY below that I will be watching carefully. As you can see we are in a range type of action right now so we can expect some volatility in both directions. In my opinion, I think we are going to go back to a stock pickers markets. I mean its always a stock pickers market in my view, but recently most traders have been trading the swoosh moves on the Index ETF's and playing them in the downward direction with the FAZ's and such. So now the weekly chart below gave us some levels to work off of with the head and shoulders pattern breakdown. 137 is top of the head and shoulders pattern, minus the 126 neckline gives a measured move of 11 points to the down side. That would give us a target around 115 and we actually traded lower than that level. We are back above the 115 level and the longer we stay above it, the more we have to think that the SPY will try and retest the top of the range. Note that we closed within last weeks bearish candle though so I am expecting some tug of war action here. It will be safe to trade light and wait to see who the victor is if you are a swing trader type person. If you are an active intraday trader then it should be interesting going into the next couple of weeks. With the down move we saw in the /DX Dollar Futures, I would recommend trading in sectors that are going to benefit going forward from weak US dollar.
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