Hey Traders,
If you’ve been watching the market lately, you’ve probably noticed something:
Not a lot’s been happening these past 10 days.
After a powerful move higher into the start of July, SPY has mostly been chopping sideways — and a lot of folks are starting to wonder if the run is over.
But before you start second-guessing everything, let me show you something…
Take a look at the chart above — specifically the green short-term, 20 day trendline.
It tracks short-term momentum, and if you notice, the price had gotten a little too extended above that trend line. And right now the price is getting back in sync with it after running a little hot.
That’s normal.
Strong moves need a breather.
A “breather” doesn’t always have to mean a big drop.
Sure, sometimes that breather looks like a pullback. Other times, like right now, it just looks like sideways chop while the trendline catches up underneath.
Either way, it’s nothing to panic over.
In fact, this is exactly what I warned about two weeks ago.
Back on June 30, I talked about how “too much blue” — too many bullish candles in a row — tends to stretch price above support.
And when that happens, we usually see a quick little reset.
And the very next day, I followed up with another note about how strong trends don’t move in straight lines. They surge, then pause… surge again, then breathe.
This latest pause we’re seeing? That’s the market breathing. It’s not breaking. It’s just catching up to structure.
Here’s What I’m Watching
For now, I’m keeping an eye on the green line — that’s my short-term support.
If we hold that area, the next leg up could be right around the corner.
If we start closing candles under it… well, we’ll cross that bridge when we get there.
But until then?
Stay patient. Let structure be your compass.
In fact, now is a perfect time to bone up on the income-producing strategies I shared with you last week.
Credit spreads, naked puts, covered calls… they’re all great ways to generate income whether the market moves sideways, dips a bit, or takes off again.
Because ultimately, we’re still in a bullish environment, even if the past 10 days hasn’t exactly felt like it.
Trade well,
Jack CarterP.S. Another way to generate income? Harnessing one of the most volatile, talked-about stocks in the market to pay out, just for moving! Details here.
