Fearful Of The Short Side
We continue to be fearful of the short side at these depressed levels in the S&P futures. Moreover, we are looking for a continuation of the trading rally.
This morning, S&Ps made a low for the day thus far at 1270, and then rebounced to 1288. In the late morning, we are trading higher on the day.
Key area will be between 1292 and 1294. If we get above that level, we expect the market to trade through yesterday’s high of 1304. Keep in mind that there is still a gap that needs to be filled above us between 1318 and 1304.
NASDAQ should be the key for this rally to continue. Keep a very close watch on this market. The performance in the NASDAQ that we’ve see thus far today leads us to believe that there is more upside to come.