The S&P 500 finished up +18.8 points on the week after reactions to U.S./China news, BREXIT grief, and the start of earnings season. Week 41 saw a -2% move and over -3% down week 40, however, it finished strong Week 42, up +20.2 points.
Although it did not move back down to the $2850.00 level we did see bounce off $2,890 (just $40 off our initial call) to hit our target of $3000.00. Now that it has completed this sequence we’ve noticed that July printed an all time high of $3025.00 and September investors and traders saw a high of $3023 before a steep -5% decline before this last attempt $3006 here in October.
Although October isn’t over, we noticed that this is the 2nd failed attempt to break the all time high. We’re inclined to believe we will see a move lower at some time to $2930 (maybe press to $2900) before the S&P 500 gain enough steam to break $3,000 from a technical perspective.
THE PLAY: Short bias as a correction before the rally (we believe a negative geopolitical or news event will be the catalyst.) Comfortably short below $2970.00 close.
Although it did not move back down to the $2850.00 level we did see bounce off $2,890 (just $40 off our initial call) to hit our target of $3000.00. Now that it has completed this sequence we’ve noticed that July printed an all time high of $3025.00 and September investors and traders saw a high of $3023 before a steep -5% decline before this last attempt $3006 here in October.
Although October isn’t over, we noticed that this is the 2nd failed attempt to break the all time high. We’re inclined to believe we will see a move lower at some time to $2930 (maybe press to $2900) before the S&P 500 gain enough steam to break $3,000 from a technical perspective.
THE PLAY: Short bias as a correction before the rally (we believe a negative geopolitical or news event will be the catalyst.) Comfortably short below $2970.00 close.