Good morning everyone and happy Tuesday!
Quite an uneventful day in the market as we expected from futures movement Sunday night. Being able to sit on the sidelines or trade quick positions for a small profit is key during these times.
The overall movement is now working to use the channel median as support. If that holds, the likelihood of SPY 300 is much higher. If that level begins to fail Tuesday – Thursday of this week, we’ll start to see the bears back in the market. Don’t jump on the bear hype too quickly if that happens as there are still plenty of bulls who want 290 support to hold before that SPY 300 test. This simply means that if the channel median breaks, the probability of SPY 300 goes down drastically, but we won’t be bearish unless SPY 290 fails and the bulls give up hope. Until that time, it’s still safer to play the bullish trend until given a reason to switch.
/es futures chart -> imgur.com/gallery/zbtBswp
Trade smart. Take profits!