Yesterday was a doji candlestick day and not much progress either way. The volume on the SPY ETF was again horrible and weak relative to the very high volume SPY swing low in mid March 2011. We are not pushing down with enough volume. This correction is too orderly. The bottom may in fact be in for a while.
I am switching to BOT long on the sp500 as of right now at 1287. We may not even reach 1250 because there is not enough energy to do so. The IWM is signaling that as well (see below).
This whole decline just appears corrective and not impulsive. We are currently trading back inside the large swing trading channel I wrote a post about before. We could trader higher into the channel again.
We may have bottomed right on the Marty Armstrong Date of June 13, 2011.
Also the IWM tested its recent swing low on 50% or even less volume. This is a bullish sign and confirms previous points I was making about how the SPY was not pushing down with enough volume and was not enough relative to the 500 million share day on March 16, 2011.
I was a bit too quick with my switch to a BOT long signal a couple of days ago, so it looks like I was a couple days too early, but now I think I have the right signal.
This could be a bottom of ‘some duration’. I am not quite sure how much duration right now, but maybe longer than we currently realize.