In yesterday’s post Wednesday, 3/30/16 – S&P hits 2064ES, Tomorrow End of Q1, we exited our trade of the week at 2062.5 ES for $1,600 profit fro 2030.75 ES long. Our second trade is also on track to target maximum profit.
Overnight, we tested 2047 support and during the day we also tested 2049 support. This region from 2046-2049 is critical to hold for bulls to maintain this rally.
Today was Window Dressing Day. Because it’s the last day of the quarter, fund managers need to make sure they close out the end of the quarter with positions that look good to investors — since investors will be seeing these quarterly reports. Fund managers won’t want to show that they are in a position that is clearly not working. One perspective is that having large short positions has not worked in the past month — so fund managers who are or have been heavily short will need to cover their shorts so they don’t show to investors that they are short. That didn’t quite happen as we only ran up into the close during the last hour and right before the close we sold off. So I’m not sure how powerful window dressing is in terms of actual price action based on today’s action.
Tomorrow before the bell we have some economic numbers coming out at 8:30am. My best guess as to how the market will react – probably to the upside.