$SPY topped out in the 423 range and pulled back quickly to the 50MA (daily) before bouncing.
Normally, we'd consider this bounce to be bullish if it wasn't for the big gap that was created during the initial pullback.
The market has a funny way of retracing it's steps in order to fill gaps left behind in the price action.
This could be playing out now and a reversal is possible which could lead to retest of the 50MA around 405.
From a macro perspective, it seems market is priced for perfection despite the alarming Y/Y inflation data (CPI/PPI) and lackluster M/M retail sales data (negative instead of positive expectations).
This is not financial advice.
Disclaimer: Long SPY 385 Aug (P) initiated on April 12
Cheers,
Magic Capital
Normally, we'd consider this bounce to be bullish if it wasn't for the big gap that was created during the initial pullback.
The market has a funny way of retracing it's steps in order to fill gaps left behind in the price action.
This could be playing out now and a reversal is possible which could lead to retest of the 50MA around 405.
From a macro perspective, it seems market is priced for perfection despite the alarming Y/Y inflation data (CPI/PPI) and lackluster M/M retail sales data (negative instead of positive expectations).
This is not financial advice.
Disclaimer: Long SPY 385 Aug (P) initiated on April 12
Cheers,
Magic Capital