That was a perfect rally from oversold conditions. If you’re trading with the signals from the Model Portfolio you should have locked in your gains on the close.
The market is now slightly overbought. Volatility collapsed the past two days and has reverted to its mean from the early week spike. At this point there is no short-term edge in either direction and we’ll wait for the next short-term pullback.
Have a great weekend!
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If you’re interested in Weekly S&P options, this short video from the CBOE on VXST is worth watching.