The market feels like a rollercoaster these days — volatile, messy, just trying to find its footing.
Headline-driven rallies and big swings in both directions is now the norm, and there’s no sign this will stop any time soon.
But things are getting interesting as major levels in the S&P 500 $SPY are coming back into play.
The bulls came out this week. Let’s zoom in.
We’ve got the VWAP from the all-time highs and the VWAP from the April lows converging into a tight range. This is what our friend Brian Shannon calls a “VWAP pinch.”
This kind of compression often signals a buildup of energy, which can lead to a strong directional move once a resolution occurs.
That’s why these levels are so important right now.
If sellers step in and we break back below 520, we’re likely heading straight toward the April lows around 480 — which just so happen to line up with the prior cycle’s highs.
On the flip side, for the bulls to get back into the fight, they've got to reclaim that 550 area.
They just about tested it today. And I have a feeling they’ll take another shot before the week is over.
It’s all about this VWAP pinch right now. Wherever it goes, the US stock market goes.
Watch these levels, and position accordingly.
Tomorrow at 4 p.m. ET, Kenny Glick is streaming his day-tradingplaybook live. If you want a repeatable way to spot the day’s fastest‑moving stocks, this is it.
