Quick Note: Please see my comments on the trading community relating to the the SPX 10 and 60 minute charts (which I will discuss tonight). The SPX has formed a high tight flag pattern which points to a larger move on the horizon. Since the simple abc bounce pattern was negated we must be open to an upside move as well as my preferred initial move lower to complete the prospective ending diagonal pattern. Respect price action and trade accordingly within the context of your plan. FOMC minutes tomorrow afternoon should also be market moving.
Quick Tidbit: Real Estate News - As I commented on housing earlier this year, the backdrop here is also perilous. Take heed.
The big news today was the 9 months’ supply of unsold new housing inventories in April, nearly doubling in the past year and classifying as a 2 SD event. Inventory excess is now at a level that in the past was consistent with a recession followed by a huge home price correction.
Please take a moment to look at the trade ideas.