The morning trade in the S&P played out in the constructive manner I suggested in my morning posting. We’ve seen a thorough auction of yesterday’s upper range. The market has sustained these levels even with the overall weakness from the financials. I think that adds a layer of constructive bullishness to this mild mannered auction.
There are only three scenarios as we wind down into the close of the week:
- Close within the auctioned range from today
- Upside breakout
- Downside breakdown
Scenario one and two are both bullish. However, should scenario one occur, I will be more apt to scale long exposure off. I would consider such a move a bit euphoric. Scenario three isn’t damning to the bull case unless we lose the key support I referenced this morning.Twitter