SP500 Levels Into The Close: BUY > 870

When trading action finds itself in a place like it is right here and now, our quant models flash a critical level that we call the Shark Line. This is the breakout/breakdown line where short sellers either get eaten or paid. I am on the bull side of this “Trade” right now. The pain trade is the higher one from here.

See the chart below. I have a major support line that is developing underwater at 836. If confirmed, the SP500 will have successfully made another higher low for this market’s recent trading cycle – that, on the margin, would also be bullish.

Don’t forget that “Heli-Ben” will be dropping free moneys from the skies at next week’s FOMC meeting. FREE money remains a bullish catalyst for any asset class that has the potential to “Re-Flate” – that includes your shorts.
KM