IWM and the Q’s broke down out of their respective rising price channels thus the channels appear to have been Bear Flags. However, SPY managed to close just inside it’s most recent rising price channel and while there is a Bearish 13/34EMA X showing on the chart, the trend line did hold so SPY/$SPX is not a ‘sell’ at the moment. MSFT’s earnings could set the stage for a rally tomorrow but if that does materialise, then who knows what’s going to happen next.
Markets have been moving within a trading range for more than a month with $SPX now almost back where it started March. HFT’s are loving it but neither Bulls nor Bears are having much luck given all the volatility. Cash is king at times such as these.