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Takeaway: The SP500 continues to trade in a very tight Risk Range.

POSITIONS: Long Consumer Discretionary (XLY), Short Energy (XLE), Utilities (XLU) and Industrials (XLI)

Government catalyst ping pong. Fun. The SP500 continues to trade in a very tight Risk Range. After taking a peek below 1404 this morning, the ball popped right back up from under that water. Risk moves fast.

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

  1. Intermediate-term TREND resistance = 1419
  2. Immediate-term TRADE support = 1404
  3. Long-term TAIL support = 1366

In other words, a close below 1404 puts 1366 in play, fast. And a close > 1419 puts the pain trade back on the upside, faster.

In the meantime, the best I can do is buy red and sell green.

KM

Keith R. McCullough
Chief Executive Officer

Hanging In: SP500 Levels, Refreshed - SPX