It has been a mixed day today for the SPY trade. In many ways it’s been trading like a Monday though it’s a Tuesday.
First day of the week anyway. We had a strong RIsk-on currency line up to give us a “bullish environment” but at the same time we had a 5 and 30-minute trade range break to the downside on the SPY.
Keep in mind that the indexes often move together to confirm a “risk-on” or “risk-off” day and today we have the Nasdaq down, the Dow up, the Russell moving sideways, and about the same for the S & P 500 or our proxy the SPY.
That said I’m still watching to see if the SPY will make a move here in the last 15 minutes of our trading window this morning. But, it will need the Nasdaq to move higher in order to follow that index and confirm the day is turning bullish.
However, if the Dow turns down and joins the Nasdaq headed lower, I think the SPY will go with it and you may want to consider puts if it breaks the 60-minute trading range to the downside.