The market is set to open near the highs of last week after a healthy overnight rotation began around 3am. If the bulls are serious about inflicting pain, I’m looking for them to capture 1520 early on and sustain it. That is the land grab required to take this tape on an exploration higher.
I kept my bias lines a bit tight last week to the downside. I gave a general area I wanted to see hold and when we got down to those levels, a bear flag below my bias line had me cutting a few names. In retrospect, and given the tenacity of this Bull Run, I cut the names too early. MOS in particular, I was caught in the rough chop. The trade is not dead. Therefore I’m highlighting a specific level, 1510.50, that I want to see the market close above. If going into the close, we cannot sustain this level, I will reduce long exposure further.
