THE STOCK & ETF CORNER

SPY : Intraday volatility part 2

In case you missed part one yesterday , here comes the second one and it's going in the opposite direction. That's called "the land of whipsaw" and it could continue for the next trading days before this market pukes on the downside. I really see this action as a start of a topping process. I stick to my guns. The SPY will remain confined between SPY 136 and SPY 133 before it gets trashed to the downside.

SMH/QQQ : Semis lagging

The QQQ's broke to new highs while the Semiconductors SMH are way below previous highs. Not a very healthy sign ...

SPY : Intraday Volatility

As I've said earlier this morning, expect lots of volatility in coming days between $133 and $ 136 and today was just an appetizer.

SPY : Watch for a topping formation

At this point in time, given the sentiment readings and how stretched to the upside the indexes are, I suspect there will be in the next few days lots of volatility between SPY$136 and SPY$133 and a resolution on the downside. I still don't expect that the SPY will break above the May 2011 highs. Not a chance in my opinion...