Sunday Prep 7/25 - $SPY/$ESThe market gave the retrace back to the 50d like we were thinking it could. But the problem for me is that it didn’t spend any real time down there. Instead, it immediately bounced and we are already back at new ATHs. It really gives me concern about whether it can actually hold. Only time will tell, but moving forward, I will be pretty cautious with longs. As always, the higher it goes without any consolidation, the more I will lean towards looking for short setups. Starting to wonder if 4500 is in the books for this week at some point. Butttttttt………..remember, this is arguably the biggest week of earnings season, so if certain names miss on numbers and get smoked, so too might the market.
Interesting thing is that we haven’t lost the previous month’s lows since last September, almost a year ago. Obviously we will see signs of weakness well ahead of ever losing the previous month’s lows, but once we start to see signs of cracking, this would be something I look for to get confirmation that we may very well be starting to roll over. But please don’t misinterpret this as me being bearish. I’m merely doing the necessary prep work to always be ready for anything. Till then, laissez les bons temps rouler. To the moon!!!
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TV Chart link:
