It looked like it was going to be another slow, low volume day until midday when caution was thrown to the wind and buying ensued into the close with a dramatic rise of SPY to bullish R3 levels. Volume was below normal although the last 20 minutes saw volume expansion. Tomorrow we'll see how much of today's enthusiasm was late day short covering.....and then comes Thursday. Based on today's action all the paranoid hype about a possible FED hike of .25% may turn out to be just smoke and have little or no effect on the market trend ....which as we mentioned before ....is about to enter the go-go Fall months.
Unfortunately....the SPY PONZO best fit scenario is not so rosy. Keep in mind this scenario is just based on what happened before over the past 25 years when faced with the current 25 week price pattern and no guarantee that the past will repeat.