Just like our analysis of XLF last week, SPY has pulled back into a previous range, and is now sitting smack in the middle of a much wider range that started just after the beginning of the year. This may signal that summer volatility is expected to decline, as the market waits for more news and the upcoming election season to tip prices in one direction or the other. 

We’re watching carefully to see if any opportunities for trades pop up based on the larger and smaller ranges that SPY has established so far.