With Tuesday's close the SPY got right up to the two channel lines (shown in red and blue) that will be the first big test of whether the "buy the dip forever" game is over. The market has been in sideways lockdown mode for two days with a slight move higher on Tuesday's close with everyone waiting to see if SPY breaks up or breaks down. Tuesday's close didn't give any clue if the SPY would be able to deal with these two channel lines.
However, as I am writing this article (Tuesday 9:30 pm CST US) the S&P Futures are tanking, currently down 20. Will the mysterious buyer that comes in and buys up the thinly traded S&P Futures in the wee hours of the morning every time the market is in trouble step in or is the Fed about to turn a cold shoulder to investors?
Trade well my friends