POSITION: no position in SPY
The SP500 scaled all the way up to its new perch yesterday of 1307. That was a new closing high for this intermediate-term cycle. From here, the view gets a lot steeper. There are no immediate-term TRADE lines of downside support until 1292.
Steeper doesn’t mean this bullish bid can’t be scaled higher. As everyone knows, higher-highs are bullish, until they become lower-highs. Then again, if you use a long-term TAIL duration, we’ve been making lower-highs for 3 years. This entire debate about how much higher from here smells Japanese.
What’s fascinating to me is that if this market scales all the way up to 1340, that it will only be -14% from its all-time highs. That’s not to say it’s going there, but it definitely could. And the more expedited its ascent, the higher the probability that it comes crashing down on everyone who chases it.
For now, we have no position.
Keith R. McCullough
Chief Executive Officer