With the volatility this morning, we lowered our sell stop on yesterday’s long position to 3933 to allow the market to react to the Fed Chairman’s speech. The new stop is a few points below yesterday’s midpoint at 3936.50, which should hold for the long swing signal if the rally has any legs.
In addition to the midpoint, we will monitor the 5-Day line at 3960.50, which becomes our new stop in a whipsaw that stays higher than our stop.
We will monitor the situation live, so be alert for signals today.