SP500 Levels: Making Sales...

At 928, the SP500 is riding the wave of her intraday highs here…. and this is a great spot to be making sales. We’d been making the call to buy them for over a month now, so with the SP500 +6.5% in less than 3 trading days, this is your payday. Not making sales anywhere north of the 922 line would constitute getting “piggy”.

The trading range that is forming in the face of a 50% price cut in volatility is this:

BUY “Trade” = 878
SELL “Trade” = 922

That’s both a nice 5% trading band of a sandbox for the real short sellers to pick off those hurrying into what they have been missing on the long side here, and a very solid base of support for those who bought the November/December lows. We’re a long way from that SP500 low of 752 by the way, +23.4% higher to be precise. Day 1 of the New Year is no day to start making up for last year. Stay with the process. Stay patient. Prices will come back to where we can make purchases again – they always do.

Keith McCullough
Research Edge LLC