Market Overview
The SPY is pulling back today after a strong gap-and-go on September 21 took it from the low 760s up to 773-774. Five consecutive closes above the 21 EMA keeps the trend intact, but today’s action is testing that level almost to the tick, with the 21 EMA sitting at 763.69 and price closing right at 763.91. The 8 EMA at 765.30 is just above, so the stack is still technically intact but very tight. VIX at 16 is calm, and the 50 day at 759.39 is not far below as a secondary cushion. We need to see this hold the 21 and ideally close back above the 8 EMA to confirm the pullback is done.
