By Barrie Einarson

Well, this is one of those moments in the market where you just have to step back and say… wow.

I’ve been talking a lot about the SPY lately, and for good reason. It’s been the story. Not just today — but over the last several weeks. To Subscribe to Trade Ideas: https://go.trade-ideas.com/SHQ
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Think back for a second.

We were stuck. Grinding. Pushing up into the high $600s — around that $698 level — and we just couldn’t break through. We hit our heads on that ceiling multiple times, and then… the rug got pulled. A pretty sharp move down into the $630–$640 range.

At the time, it felt like we might be in for a longer reset.

But markets don’t wait around.

The Move Back — And Then Some

What’s remarkable isn’t just that we recovered — it’s how quickly we did.

Now here we are, trading right around $700 on the SPY.

That level felt so far away not long ago. It’s funny how the market works — what once seemed like a stretch suddenly becomes reality, and then potentially… the new baseline.

If You Weren’t in Energy, You Were Fine

Let’s talk about today’s action.

This was one of those sessions where, broadly speaking, things just worked. There was strong participation across the board.

The exception?

Energy.

If you were heavily positioned in oil stocks, you probably didn’t have the same experience as the rest of the market. But outside of that sector, there was a lot to like — and that tells us something important.

We’re seeing rotation, not weakness.

Money isn’t leaving the market — it’s just moving to where it wants to be treated best.

Momentum Is Back

This kind of move — reclaiming highs and pushing into new territory — speaks to renewed momentum.

And momentum is a powerful thing.

When traders and institutions start to believe that higher prices are justified, you get:

• Stronger follow-through
• Cleaner trends
• Better trading opportunities

That’s the environment we’re stepping into right now.

What Could Change the Picture?

Of course, we can’t ignore the bigger macro backdrop.

Geopolitics still matter. If we see any kind of positive development with Iran, that could reduce uncertainty and support this move even further.

In that case, you have to start asking the question:

Is this level… the new normal?

Final Thoughts

The key takeaway here isn’t just that SPY hit $700.

It’s the journey:

• Resistance tested and rejected
• A sharp pullback
• Then a strong recovery into new highs

That kind of price action builds confidence.

As traders, our job isn’t to predict — it’s to recognize what’s happening and position accordingly.

Right now, the market is telling us:
Stay with strength. Follow the rotation. Respect the trend.

Have a great weekend, everyone.