SPY: Watch Your Levels

The S&P 500 (SPY) hit a new all-time high intraday today of 1572 after yesterday's attempt, which saw the index testing our TRADE line of support at 1556 by the close on light volume. Chasing the broader macro market and buying high and selling low just doesn't work. We'll keep an eye on the S&P 500 as well as the US dollar; a strong dollar drives down commodity inflation and boosts the S&P 500. All the more reason to stay the course and remain bullish on the market.

 

SPY: Watch Your Levels - SPXRUSSEL

 

We also bought the Russell 2000 (IWM) yesterday when the index and S&P 500 both held their TRADE lines of support. Sticking to our process is a must.