Run For the Golf Course
In one of the most uneventful trades in recent memory, the only question was who could get to the golf course first. To say that the market is slow would be an understatement. The biggest trade I noticed from a dealer was for roughly 250 contracts.
What does it mean for the trader? Avoid, Avoid, Avoid. And when you get the itch to do something, avoid some more. Only an hourly close above 1491.40 should be respected on the upside. If this happens, I would look for a continuation of this grinding rally, with a target of 1500.50.
In my opinion, the reason the trade has been slow is due to numerous reasons, but one for certain is the European holiday and the sector rotation we are seeing — especially towards the DOW 30 stocks. A strong rally will only take flight when all the major indices are acting together, and I do not see this happening until after Labor Day.
If we break lower today, I think only a settlement below 1478.50 would be a short-term negative for the market. My advice — lay low and save your collective trading bullets for some other time.