The rally continued today in a more stealth like fashion as they just kind of “walked it up”. If you have been reading the blog every night, you know I have been posting the above chart showing the “wedge” pattern that the S&P is in. As mentioned last night, that small red horizontal I drew was resistance within that wedge. That area was around 1203-1204 and we broke through it today. It was a marginal breakthrough, so a strong follow through will be needed to really goose this market higher. I can see a move to 1230 if it can through.
Tomorrow is “quadruple” witching options expiration so expect much volume and perhaps some choppy trading. Personally, I am not a big fan of Friday trading especially on options expiration day.
Europe is still a scary mess, even though the obsession with its demise has faded the last couple of days. Based on that, I am still looking over my shoulder every day. I would like to see way more buy side volume to this rally. We are up four days days in a row, hopefully we can make it five. Stay on your toes, we’re still playing in traffic and the short side could look good again soon.