Still Bullish: SP500 Levels, Refreshed

Takeaway: Don’t expect me to join the Professional Top Calling #PTC Committee.

POSITION: 14 LONGS, 7 SHORTS @Hedgeye

 

Bullish is as bullish does. Higher-lows holding all lines of support on no-volume down days combined with higher-highs on rallies – that’s bullish.

 

#StrongDollar continues to have causal impact on both Commodity Deflation (good for US Consumption Growth) and the SP500’s return. On a 60-day basis the correlation between the US Dollar Index and the SP500 is now +0.81. That’s really bullish.

 

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

 

  1. Immediate-term TRADE resistance = 1576 (higher-highs)
  2. Immediate-term TRADE support = 1557 (higher-lows)
  3. Intermediate-term TREND support = 1501

 

In other words, when higher-highs are A) probable and B) within the context of all-time highs, don’t expect me to join the Professional Top Calling #PTC Committee.

 

KM

 

Keith R. McCullough
Chief Executive Officer

 

Still Bullish: SP500 Levels, Refreshed - SPX