Squeezy: SP500 Levels, Refreshed

POSITION: no position SPY

 

In this morning’s Early Look note (“Bullish Bears”), I walked through why I thought this morning’s Global Macro Grind was bullish for the immediate-term TRADE duration in US Equities.

 

A market like this (bearish intermediate-term TREND, with resistance = 1320) can get Squeezy; particularly after it gets exhausted on the downside. After 6 consecutive down weeks, we’re probably going to see an up week –but the question remains, up to where? 

  1. TRADE = 1312 – that would be a probable +3.3% Meltup
  2. TREND = 1320 – that would be more than a Meltup, if it were to hold 

I am expecting #1, not #2, for now…

 

The hallmark of a great risk management is being Duration Agnostic. Downside support is now a higher intermediate-term low at 1262.

 

Manage your risk proactively,

KM

 

Keith R. McCullough
Chief Executive Officer

 

Squeezy: SP500 Levels, Refreshed - SP500