After a market rebound from eight-week lows back into the prior congestion, is there a cloud in our future? The S&P catapulted from the 2,120 low to 2,177 and right back into the middle of the prior congestion range. This is strong resistance because of the length of time the index traded in the narrow range. The 2185-2193 range could be tough to cross without another catalyst and I do not see one on the horizon. The is a strong possibility we could see some profit taking on Friday ahead of the weekend event risk. Any pullback would be appreciated since many of the momentum stocks are up 3-5% or even more over the last three days.
Our long positions are basking in the glow of the big rally but the strong gains are begging for at least a one day rest. Any new stock we would want to add probably needs that same rest. I am recommending we hold off on adding plays for Friday and take a fresh look in the weekend newsletter.
NEW DIRECTIONAL CALL PLAYS
No New Bullish Plays
NEW DIRECTIONAL PUT PLAYS
No New Bearish Plays