Finally, the pattern is finally making sense to some degree. The market keeps going up and it’s been a struggle to figure out whether each dip is a buy the f’in dip (BTFD) opportunity or the beginning of a turnaround to the downside.
Last Friday, we got a super quick drop from 2650 down to 2605 – due to some Trump / Russia news – followed by an immediate rebound into the weekend that exploded to new highs into this past Monday’s market 9:30am open over 2660.
Then it pulled back – we saw 2650 ES as resistance zone – it got as high as 2648.5 — was hoping for 2650 but it didn’t happen.
So on the way down at 2643/44 – we alerted a buy on SPY puts – so that position is up $800 so far.
So we may have caught this next wave. Will this wave reverse and go back up?
I’m willing to guess we see 2605 before we see another high over 2660 ES. In terms of warning signs – I don’t want to see the Nasdaq pop up too much.
Today’s S&P500 Hourly Chart
We initiated a short at 2643 ES to members, currently 2629 ES
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