after the better than expected ISM report at 10am today, the market ripped higher, with the SPY finally taking out that upper-most resistance zone that i was watching. as i posted yesterday, this would be a bullish technical breakout that most likely lead to new highs in the market and was my alternative scenario. therefore, as of now, and unless prices somehow manage to make a sudden reversal and close below that resistance (now support) zone, my near-term bias is to the upside. however, as i also mentioned recently, i want to see all the major index take out their similar resistance levels and the recent highs before getting too aggressive on the long side.
here the updated 60 min SPY along with yesterday’s 60 min, followed by the QQQ 60 minute. note that the Q’s are right below the final significant resistance level before the recent highs so until/unless that level is taken out, i am not making any changes to my current positions (still slightly net short but actually being bailed out with a couple of my longs on fire, CCJ & SHLD). regardless, i want to see how the markets hold up into the close and possibly tomorrow before making any significant changes.
