S&P 500 Takes Two Steps Forward and One Step Back

NEW YORK (TheStreet) -- It's been another very quiet day as we consolidate recent gains. Just superb action, all in all, as we near the end of the week.

I am looking for another quiet Friday as we move into the long weekend.

We don't want to see really strong moves on a daily basis, since that tells me we are nearing an end to the market's strength. Rather, I like a nice two-steps-forward, one-step-back move -- which we are seeing.

While the S&P 500 SPDR ETF (SPY) is breaking its steep uptrend line, we are now seeing it put in a small bull flag that should only last one more day.

A price of $199.50 would be ideal for the ETF to hold on the lower end Friday.

I know there were many traders who were shaken out earlier today as the S&P 500 ETF moved under $200, but that is what markets do. And the markets' job is to take along as few people as possible for the ride.

The most important price of the day is the closing price. Same with the most important price of the week and month.

If you can at all ignore the noise of the day, unless it is largely bearish on heavy volume, and just focus on the closing price, it will do you much better.

At the time of publication, the author held no positions in any of the stocks mentioned.

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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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