My Gift To You
At this point we have a slow motion meltup which is long in the tooth and we are at major long term resistance. This is a test for the market. Those who tell you “we fall here” or “we go to SPX 1400 now are just full of shit.
There is NO WAY, NO WAY AT ALL OF KNOWING whether this market will pass or fail this test.
What we have here is a POTENTIAL failed retest of the high. I am very uncomfortable with buying a breakout here, not because it will not happen, but because the highest probability outcome after a breakout is a pullback to shake out the weak hands before a powerful upmove. If we go up from here, I’m on alert for a very high probability long signal in approx 2 weeks.
That being said we have an inside day which is also a retest variation sell signal.
Don’t be foolish, WAIT for a breach of the daily $spx lows before you get short. Very tight stop, 1 tick above the daily highs.
You are welcome 🙂