Hi folks. Due to the death of a close family member I am unable to get out a video tonight and I could be out of pocket for most of the day tomorrow with funeral and related things, but we’ll see how she goes.
I did want to touch base though and show you guys some levels here. The jury is still out about how much teeth Friday’s rally will have. We’ve seen these “this is the one” rallies many times in the past, only to falter and disappoint.
Since the S&P crashed and burned on August 25, and took out that bear wedge that we’ve talked about for a month now, the pattern finds itself in a box or rectangle. Its more of a view from 30,000 feet than up close.
As you can see in the chart below, it does look like we could make a higher run to the top of the box around 2000 (around the 50 day moving average), but first, the SPX needs to get above that red line which is around the levels of Fridays close. The latter is your resistance.
Please check the P&L for any adjusted stops and I will do my best to check in tomorrow.