POSITION: No Position SPY
We are long 2 S&P Sector ETFs (XLP and XLV). After covering our short position in the Financials (XLF), we do not currently have any S&P Sector shorts. What’s implied by our positioning is that we think the SP500 is setting up to rally, again, to another lower-YTD and lower-long-term high.
- Long-term TAIL resistance = 1377
- Immediate-term TRADE resistance = 1353
- Intermediate-term TREND support = 1320
What’s interesting here is that I have TRADE and TREND lines of support converging below the markets price. That’s bullish – and convergence like this in my model typically leads to a sharp rally to the upside.
Is there a catalyst for the Risk Ranger to register the high-end of the range in the chart below? Big time. A Debt Deal should be imminent. If Congress follows the polls, that is (Rasmussen just registered a New Low: 6% think Congress is doing a good job!). The Pain Trade is still up.
Keith R. McCullough
Chief Executive Officer