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POSITIONS: Long Utilities (XLU), Short Industrials (XLI)

With the SP500 under my long-term TAIL line of support, this market is in No Man’s Land right now.

There’s a big difference between trading the short side of your book aggressively (Short Covering Opportunities) and ramping up gross long exposure when we are immediate-term TRADE oversold.

Across all 3 of my core risk management durations, here are the lines that matter most: 

  1. Intermediate-term TREND resistance = 1369
  2. Immediate-term TRADE resistance = 1308
  3. Long-term TAIL resistance = 1283 

In other words, I am in no hurry to buy/cover (unless I get an immediate-term TRADE oversold signal at the security level) and won’t be provided that 1283 is confirmed as resistance.

There’s immediate-term TRADE support (oversold) at 1268.

KM

Keith R. McCullough
Chief Executive Officer

No Man's Land: SP500 Levels, Refreshed - SPX