POSITION: 6 LONGS, 4 SHORTS @Hedgeye
That breakdown through our immediate-term TRADE line of 1837 mattered last week. So did the VIX breaking out above our TREND line of 14.91. Now we’re in a tough spot. While 1779 TREND support is holding, the signal is registering TRADE support below that at 1769.
Lots of levels – but here are the ones that matter to me most:
- Immediate-term TRADE resistance = 1819
- Intermediate-term TREND support = 1779
- Immediate-term TRADE support = 1769
In other words, the first shots across the bow are direct hits (SPX is TRADE bearish and signaling both lower-highs and lower-lows within its immediate-term risk range). If the TREND breaks, there is no long-term TAIL support to 1678.
So I’ll go with low gross and tight net, for now.
Keith R. McCullough
Chief Executive Officer