Bullish: SP500 Levels, Refreshed



Bullish, then bearish, then bullish – like sands through the hour glass (of Chaos Theory), these are the days of our lives…


As I get older, I don’t get caught up with the risk management style of being flexible as much as I worry about the results of the process. That’s what matters in this game. Quantitative signals within research views are constantly changing, so I try my best to change alongside them.


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


  1. Immediate-term TRADE resistance = 1637
  2. Immediate-term TRADE support = 1617
  3. Intermediate-term TREND support = 1592


In other words, the SP500 has quietly recaptured both TREND (1592) and TRADE (1617) lines of support and now has no resistance to 1637, then to the all-time highs (1669) after that.


This morning’s ISM New Orders data (51.9 June vs 48.8 May) supports more of the same in terms of old news (US #GrowthAccelerating in the April-June data series). The problem with that is June is over. The other problem with this rally is that it has occurred on no volume.


There are always problems in life – dwelling on the wrong problems at the wrong times can also be problematic.


Stay flexible out there and Happy Canada Day!



Keith R. McCullough
Chief Executive Officer



Bullish: SP500 Levels, Refreshed  - SPX

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