Market Dashboard - VSTI cooled off


Friday's intraday sell-off was just what the Very Short Term Indicator (VSTI) needed.  Primary Indicator #1 still has upside potential and the Leading Directional Indicator is still bullish.  I'm keeping an eye on Primary Indicator #2 because it is in the red zone and the two needles are moving closer together.  The reason this concerns me is that when the needles on Primary #2 flip in the red zone it can be a signal of weakness for bulls.

Below, on the SPY, we can see that the price action found resistance at the yellow dashed line we drew on the chart Thursday.  The question is, was the retreat from that level enough to let the bulls consolidate strength and re-assume the charge on Monday.. I think it probably was.

The IWM (small cap) chart below looks relatively similar in structure to the SPY.  Price has retreated to the 20 period simple moving average which could be a good level of support for bulls.