Can the Market Breakout?

This morning the SPY is testing the 50-day MA.

PRE-OPEN MARKET COMMENTS FRIDAY - This is the move I've been waiting for. The market is going to test the 50-day MA this morning and a minor downward sloping trendline. My theory is that we are in a downward sloping trading channel and that the selling pressure is building. That's what the price action suggests. In this type of a pattern you short when resistance is confirmed at the upper end of the trading channel and you take gains when the market drops to the lower end of the trading channel. It's not an easy pattern to trade. In the early stages of a market transition, buyers are still engaged. They have been conditioned to buy dips and they will keep doing it until it doesn't work.

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