Beta's TAIL: SP500 Levels, Refreshed

11/15/11 11:09AM EST

POSITION: Short SPY

It’s both impressive and scary that the SP500 is hanging out up here in no man’s land.

Impressive is as impressive does (until it doesn’t). And scary because both volume and volatility signals in my model are signaling things can unwind back down to 1237 in short order (like they did pre-open).

Across our 3 core risk management durations, here are my lines that matter most: 

  1. TAIL (resistance) = 1269
  2. TRADE (resistance) = 1254
  3. TREND (support) = 1237 

On the downside, snapping 1237 would bring on a whole host of different issues. Stay tuned on that. I’ll let the market tell me what to do when/if we get there.

In the meantime, get the US Dollar right, and we think you’ll get most things beta right.

KM

Keith R. McCullough
Chief Executive Officer

Beta's TAIL: SP500 Levels, Refreshed - SPX

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