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In t-minus an hour, I'll be turning off my screens for the next week. Ahead of that, I felt like I should leave a map.

Below are the risk management lines of the SP500's current setup. While plenty a pundit continues to try to call for squeezes and crashes (AFTER the big ones occurred), I think its most sensible to dial down your gross long exposure and trade this proactively predictable range.

•1.       I am dropping my immediate term TRADE support line for the SP500 down to 901 (from 904). Intermediate term TREND line support is significant at 848 (thick green line in the chart below).

•2.       On the upside, there's an immediate term TRADE line of resistance at 928 (I made a total of 6 sales up and into that line this morning), and the most important line resistance at 967. This is a new duration product that we are developing called the long term TAIL, which is 3 years or less, and very much a dominant force of price gravity.

Top to bottom, this is a 14% point range. That's a lot different than the -57% peak-to-trough crash, or the +40% trough-to-peak squeeze that ended last Friday at 946. Manage your daily risk accordingly, and best of luck.

KM

Keith R. McCullough

Chief Executive Officer

Risk Management Map: SP500 Levels, Refreshed...  - ahead