The week that was in IWM SPY:
- "The broken clock is right twice a day" principle struck this week (o.k., in my case-once) when I said in the video last week that the confluence of levels, on the IWM could serve as support much as a net, and they did.
- Perhaps more interestingly is that both SPY and IWM bottomed at, or within .$.10 of the monthly S1
- Notice SPY maintained the upward trend it began at the bottom, so, "The trend is your friend". I'm not yet seeing definitive weakness on higher time frame charts
- We are in a short term channel, arguably Inverted Head & Shoulders on both IWM and SPY, the descending 50 day SMA likely first targets.
- Going out on a limb here for Monday: we gap up massively...
On a more macro note: It's all Europe all the time. A premise I hold, which is hardly original, is that political solutions are almost NEVER the best operational solution for a given problem.
Europe faces the decision to either subsume their cultural identities, which have been formed over centuries, to create a monetary/fiscal union where each culture answers to some central authority, or face some type of break up of the Euro. Whether it's the weaker countries leaving, the stronger countries leaving, or the total dissolution, is up to the powers to be...which brings me back to my premise...
"But Captain, I think the deck chairs would look better this way..."
Here are the images for next week:
