The Bear is Resting, Onward and Upward, Then?

Good Morning:

• The market closed above our daily trigger lines yesterday, though it was a close call.
• Other key levels held, while our lower support line at 3904, also near the Weekly Expected Move low, acted as the pivot zone.
• Yesterday’s close managed to keep the 10/13 Navigator Swing Buy signal alive.
• If today’s market closes above yesterday’s high at 3990.25, I am still looking for that last push up to the 200-MA and other conjunction of targets/resistance around 4100 and possibly as high as 4150.
• As stated before, the 20-week wave usually runs up 6-8 weeks, even in a bear. We are in week six, so it is getting close to the danger zone. We will take it day by day.
• I have been up all night to catch the next hourly buy signal, which finally manifested around 3:45 am EST at 3957. We will trail a stop under the hourly Algo trigger, but the daily 5-ema also works well.
• Since I have been up all night, I won’t be in the trading room. Tom or Rose will cover.
• I will try for Rose, but her direct feed is not working. That means I have to manually mic here through the speakers. We will give it a go.
• Key levels have not changed, and the pullback looks acceptably healthy enough to buy for now.
• I have been spending quite a bit of time trying to assess the impact of these “meme” players controlling 40% of the outstanding options that are purchased and expire within 24 hours. It increases the risk of flash crashes, at minimum. Sure, we all like a 5-6% short-covering day like we had last week. But the mirror image of that day lies in our future as well.
• Mind your stops.

Stay Tuned.

A.F. Thornton