I was up late battling the overnight Globex thieves who read yesterday’s post. The Founders Group went back to a 10% position using S&P Futures last night before our Globex cousins stole all my thunder. We intend to exchange the futures for a 25% position in at the money November 19th SPY calls today.
The market gapped open above all of the critical resistance identified in my last post. Now you see the setup I described working in real-time. Let the market settle in, and don’t chase it. Look for a dip on the hourly charts to enter.
I have no expectations for this rally beyond the 4450 target. We will see what they can do after that. And as I have said all along, when you break a 60-week bull microchannel, the probabilities are that you enter a trading range. A move to the all-time high is the most likely outcome before rolling over again.
And what lies ahead is a 20-week cycle low due later in the year – likely November. So we can look forward to that.
Meanwhile, enjoy the run, and I will keep you posted on trades. I will also keep you posted on what kind of leadership we see out of this run.
A.F. Thornton