Market Overview
SPY is back above the 21 EMA today after a rough stretch that saw it slice through the level and tag 756.64 intraday just yesterday. This could be the only the 1st close back above the 21 EMA, so the trend is far from being confirmed yet, and the 8 EMA at 764.89 sitting just under the 21 at 765.03 shows how tight this fight still is. The 50 day at 758.65 is holding as the next support if this reclaim fails. VIX at 15.7 stays calm, so there’s no panic in the options market even with the chop. We want to see a 2nd and 3rd close above the 21 before trusting this as anything more than a bounce. I am being very cautious here hence the lack of conviction on flow today.
