We can't say that we didn't warn the shorts - now we'll make some sales into their bids to cover as we surpass this morning's immediate term call for SPX 877 and push towards my refreshed immediate term target of 881 (dotted red line). Some people call this trading - I call it proactively managing predictable risk.
Higher highs are bullish, and the levels of support that I am looking at below (green lines in the chart) are also manifesting into higher lows (bullish). Alongside a US Dollar and Volatility Index (VIX) that are breaking down, this is all good, provided that you are a buyer of down moves associated with the Swine and the Stress...
Chasing on the long side or covering your shorts up here is not what I'd be doing. Trade the range with a bullish bias. Keep it tight. Stay disciplined on your levels.
KM
Keith R. McCullough
Chief Executive Officer
