Today was a strong up day for the market. The SPY has closed above the prior bounce high of two weeks ago (see above chart). Despite the strong move from last week's lows of 112 to today's close of 121.36, I feel that this has been a much more difficult market to trade than what the chart of the SPY shows. It has been extremely volatile. I feel these types of markets can be especially challenging for swing traders. I expect the volatility to continue for some time. The daily chart above is still damaged with the 50 (red) and 20 (blue) moving averages still declining. However the short term momentum is still strongly up and if the SPY can hold above the 121 level and show some positive price action tomorrow I may try some smaller than normal size position swing trades. I still do not feel very confident in the market, but there is a possibility of a move up to the prior resistance and the 50 DMA of 126 on the SPY.
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