The Next Important SPY Time Date Is Approaching

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10,641 and -0.2% on the week. The
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week, despite a -0.8% day on Friday. NYSE volume was 1.38 billion shares, the

lowest volume since last Monday’s 1.3 billion shares. The Generals did their

thing for three days in succession with the SPX +0.2%, +0.5% and +0.6% prior to

month-end’s -0.8% on Friday. The regulators frown on any “aggressive mark-ups”

the last day of the month, quarter, etc., so nobody was rushing in to take

prices above Thursday’s 1245.15 new rally high, and certainly not the hedge

funds if there were no significant Generals’ buy orders to front run on a

mark-up. The weakest sectors last week were the financials, with the
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-0.4% on the week along with the BKX, -1.5%, and XBD, -0.4%. The rest of the

sectors finished on the green side led by the
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with a 1245.15 intraday high vs. the 1254 actual .618 level, just +0.07% above

1245.15. Daytraders capitalized on the H&S/double top with short entry below

high of 37.42 to a 37.10 intraday low on the 12:30 p.m. ET, which set up an RST

long entry above 37.13, which ran +1.1% to 37.55 before reversing on an RST

short entry below 37.51 with entry on the 2:10 p.m. bar. This trade only

declined to 37.33 before closing at 37.36. Both the RST long and short were

clearly defined, by-the-book intraday entries with nothing subjective about

them. Both RSTs were staring you in the face, so if you failed to take either

one, look inside yourself for the reason because it’s not the strategy’s

August volume is generally to the low side and liquidity thin which can lead to

some downside air pockets, especially as the SPX approaches the 1254 .618

retracement to 1553 with the 1245.15 intraday high and 1243.72 close. In fact,

the August/September combination is probably worse than the month of August as

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04/20/05 99.89 low is the 1.618 ratio on 08/05, which is next Saturday, so your