Toppy? SP500 Levels, Refreshed

Takeaway: If The USD and rates fail here, this market has plenty of downside risks.

POSITION: 8 LONGS, 6 SHORTS @Hedgeye

I’m buying Gold and Treasuries for the 1st time in a year (today) as the SP500 signals lower-highs and the VIX signals higher-lows. If The USD and rates fail here, this market has plenty of downside risks.

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

  1. Immediate-term TRADE resistance = 1771
  2. Immediate-term TRADE support = 1744
  3. Intermediate-term TREND support = 1683

In other words, with the all-time closing high (1771) registering as resistance, there’s plenty of mean reversion downside. If the market stops me out of these thoughts, so be it. But sentiment (II Bull/Bear Spread) is tracking at its YTD high now too.

KM

Keith McCullough

Chief Executive Officer

Toppy? SP500 Levels, Refreshed - SPX