I am running out, but wanted to give you a quick update. The bulls have taken the Yellen release and used it to gap above resistance. I mentioned in the morning notes: Watch the 2439-2443 resistance zone-that is where the bears will defend if they are going to push the spx lower. The SPX went right up to the 2444 and has paused. What I am seeing under the hood-are institutional selling up here. Does that mean we can’t head to the 2446/2449 resistance today? No, what it means-they aren’t participating in the rally and this seems like more of a massive short squeeze.
What to do with this information? If I was looking to build a short position, it would be in this area-and the see if I could add near the 2446/2449 pivots and place my stop just above 2454. It would be a limited risk entry and if the institutional selling kicks in-it may end up being a fantastic entry-with limited risk.
Stay open minded today and understand, the market is going to do what it is going to do. So have stops in place if one decides to take a short trade-and let the cards fall where they fall. G