Hello Everyone,
Quick Notes: After the recent 4/5 day rally, all the major indices closed lower today. Tomorrow is the Jackson Hold announcement and their have been Fed speakers hinting at tapering so we'll see how things unfold in the coming days. Technically speaking, ES held initial support today 4465 after testing it twice today. Zooming out, if you look at the SPX this year, we have seen six rallies after pullbacks around the 50 day MA. Given that it's been tested so many times, my belief is the next pullback will not be a lucky 7 which, if true, would open the door a deeper pullback that is likely to be more complex. As always, respect the prevailing trend until evidence changes BUT make sure you have a plan in place ahead of time that includes an exit strategy commensurate with YOUR approach and risk tolerance.
Last weekend, I posted several bounce setups that played out nicely earlier this week. In addition, we have had a few nice tight setups (coils) that led to nice trades. At this time, I'm not seeing many quality long setups and thus will only add a few select names tonight. Keep hedges handy as Matt discussed last night - SPXU served it's purpose today.
Please take a moment to look at the trade ideas.
