S&P 1070 --- A Tough Nut To Crack (ZT)

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We encountered a bit of a gap & crap in today’s session (opening gap followed by a sideways trade), but still managed a fourth straight day of gains.



The bulls might be a little disappointed that they couldn’t close them out at new recovery highs in order to keep the heat on the bears and those scared and sidelined. At least for today, the S&P 1070 area proved to be tough nut to crack.

As you might expect after four-days of positive action, a few short-term indicators (like the Equity Only Put/Call Ratio) are suggesting that we’ll need to consolidate a tiny bit before launching an assault on S&P 1100. A little weakness tomorrow and/or Monday would do the trick before earnings season really gets underway. But, we’ll see if these animal spirits can be contained.

With yet another quick reversal from oversold conditions, you had to be nimble to catch some good trades this week. And, if you’re like me, it is easy tonight to fall trap to the “would of – could of – should of – mindset.” No need to do that because we’ll have a new set of setups come our way soon enough.