Monday March 21, 2016
Key Developments :
- Very little new development today as market trades in 10 point range.
Looking at the chart above we can see how we traded in a pretty small 10 point range today. I took a very small short home in the futures, based on a few things.
1) The 5 min H&S I see at the top of the range here.
2) It is also typical that we sell off a bit after op-ex, so that is my bet and I believe the risk of a big move against me is small.
3) The failed breakout above Friday’s high.
I will be pretty stingy with this trade which is more of a hedge against long stock positions than anything else. Until wee see something like a multi-day H&S develop on the 30 minute chart, I am not going to aggressively short.
In the big picture we are still comfortably in the up-trend targeting 2084 (double bottom cup/handle target). Again until that changes and we see distribution on the 30 min chart, It is stupid to short aggressively.
The Bottom Line:
Very little development index wise today. Range was small and choppy. There will be a point where a trade in the SPX will develop, but not much of one as of now.
Chart of the Day:
Chart below. Enough Said.