Today pretty much fit the bill of a boring summer trading day heading into a long weekend. This was sort of the expectation coming into today. Despite the sell off yesterday, I ended my post yesterday by saying that we will likely have to wait until next week for clarity.

Given that we are heading into a long weekend, today was expected to be uneventful. While SPX did rally 80 points and broke over the 7500 level, I think most of the intraday price action was pretty muted. For most of the day, SPX was stuck inside of a very narrow range.

Today was just a gap up and stay stuck kind of a day. I find it hard to use the word momentum because all of the momentum came overnight and resulted in a gap up. From the open to close, SPX moved a net 13 points. That is a negligible amount.

The daily candle today lives entire within the one from yesterday, showcasing the lack of movement and momentum we had today. We gapped up and stayed up. There were no real pullbacks and there was no continuation of the rally. The market opened and basically hit the pause button after that.

SPX did close about 70 points higher on the week, which I am sure the bulls will take as a win. It’s important to note that on Monday we broke the upper end of the expected move, and Wednesday we were negative for the week.

I suppose the rally today could be considered dip buying, and the bulls saved the week by pushing things higher. I wonder though, how much of the move up today was just because that’s usually what happens going into a long weekend, or did we really just ignore all of the Fed’s message from yesterday?

I guess next week we will have our answer.

On the shorter timeframe, the 7510 level seems kind of important and has now emerged as a key level.

We have tagged this level a few times over the past few days and have been unable to break it. The first attempt was a swift rejection, but the prior few have left price kind of hanging around. If we keep knocking on that door, it will eventually open. However, if the next one leads to another sharp sell off, then we could take out the most recent lows from Wednesday.

7510 will be important as we kick off next week, and to the downside we will have 7400.

As always, I will have more over the weekend, covering the expected move for next week and other key levels to watch for.

Enjoy the long weekend!