Another gap up after the number of Americans seeking unemployment aid fell to a five-year low last week. The second good news is that home construction surged 12.1 percent in December.

$SPY is opening above my 147.60 break out level, so that is the spot I will watch to see if it holds firmly. I know that my 45 day rally lasted longer than I expected, but I can see that the volume have diminished a lot, and I think that since we are just running on fumes, we are most likely to reverse anytime soon. The $NYMO (McClellan Oscillator) should have a significant spike today if the market can hold it’s strength today, and maybe we start to sell. Don’t fight this market and just go short when you see a confirmation.

$SPY 1st support is 147.20, 2nd support 146.52,and 3rd is 146.134.

$SPY 1st target is 146.84, 2nd is 147.60, 3rd is 148.68, and 4th one just for fun is 149.20.

Trade what you see not what you think.

You Might Like

  • South Korea and its impact on the US stock market.

    South Korea: The Hidden Driver of US Tech Volatility

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped