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?
- TRADE = 1312 – that would be a probable +3.3% Meltup
- 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,
Keith R. McCullough
Chief Executive Officer