#AngryBears: SP500 Levels, Refreshed

Takeaway: There is no long-term resistance in the SP500 to the prior closing all-time highs (1565).

POSITION: 10 LONGS, 6 SHORTS @Hedgeye

Overbought signals come and go. They are very short-term in nature. We’ll get another one > 1528 in the SP500. But Bullish Formations (bullish TRADE, TREND, and TAIL) that are making higher-highs are tough to sell until you get those signals.

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

  1. Immediate-term TRADE overbought = 1528
  2. Immediate-term TRADE support = 1516
  3. Intermediate-term TREND support = 1458

In other words, higher-lows and higher-highs are bullish, until they are not – that’s why we are trying to dynamically measure exhaustion within this Bullish Formation. As volatility drops, exhaustion can get more exhausted than a classical technician thinks.

Long-term, as you can see in the 10yr chart there is no long-term resistance in the SP500 to the prior closing all-time highs (1565). The Russell2000 has been making higher-all-time-highs, every other day.

Keep moving out there,

KM

Keith R. McCullough
Chief Executive Officer

#AngryBears: SP500 Levels, Refreshed - SPX