Still Bullish: SP500 Levels, Refreshed

Takeaway: The SP500 is still bullish because it continues to signal a series of higher-lows (1824 support) and higher-highs (1850 resistance).

POSITION: 10 LONGS, 5 SHORTS @Hedgeye

 

While its fascinating to watch the same pundits who tried calling a market top for all of 2013 do the same in 2014, calling tops is not a process. It’s a marketing gig. We do levels, risk ranges, and research instead.

 

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

 

  1. Immediate-term TRADE resistance = 1850
  2. Immediate-term TRADE support = 1824
  3. Intermediate-term TREND support = 1762

 

In other words, the SP500 is still bullish because it continues to signal a series of higher-lows (1824 support) and higher-highs (1850 resistance vs. the all-time closing high of 1848 on DEC 31).

 

With mean reversion support -4% lower (1762), that’s not to say that buying-the-damn-bubble #BTDB on down days is for the faint of heart. It’s just a friendly reminder that it continues to pay the bills if you buyem right.

 

Win the day,

KM

 

Keith McCullough

Chief Executive Officer

 

Still Bullish: SP500 Levels, Refreshed - SPX