Buyem! SP500 Levels, Refreshed

Takeaway: If you can’t buyem here, you’re not as bullish as you thought you could be.

POSITIONS: Long Consumer Discretionary (XLY) and Apple (AAPL)

Our process hasn’t changed; prices have. This meltdown in Bernanke Oil Inflation Expectations is very good for US Consumption (i.e. the 71%).

Admittedly, I’m making this call for the month and quarter-end bounce from oversold lows (this is the 7th down day in the last 8 for the SP500). As we’ve just witnessed, however, 25-45 handle moves in the SP500 matter.

Across our core risk management durations, here are the lines that matter to me most here:

  1. Immediate-term TRADE resistance = 1458
  2. Immediate-term TRADE support = 1430
  3. Intermediate-term TREND support = 1419

That 1458 TRADE break signal we have you earlier in the week mattered as much as this 1 support zone does. If you can’t buyem here, you’re not as bullish as you thought you could be.


KM

Keith R. McCullough
Chief Executive Officer

Buyem! SP500 Levels, Refreshed - 1