Market reversed off the highs and SPY is putting in a bearish engulfing
$S&P 500(.SPX)$ $Invesco QQQ Trust-ETF(QQQ)$ $iShares Russell 2000 Value ETF(IWN)$ Market reversed off the highs and the SPY $SPDR S&P 500 ETF Trust(SPY)$ is putting in a bearish engulfing "outside day."
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During a correction, it's normal for the market to start off strong and end the day weak. That's one of the signs that the correction has not yet run its course and there may be more downside to come.
The real troubling action I'm seeing here is the extreme pick up in volatility in individual names (many in response to earnings). In a good number of cases we are seeing pivot failures and even full blown base failures.
The market is under pressure. We are cautious in the near-term, but would look to buy a market pullback of 5-10% on the SPY. Our long-term SPY buy signal issued on January 13, 2023 remain in effect.
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