Partial Long R2K. Tight profit stop.
Day traded yesterday and elected to hold overnight.
My summation signal is up.
My composite trend signal is up.
Apparently, David Tepper said he wasn't nervous anymore yesterday, which triggered the Pavlovian stampede.
VIX contract has crashed to bull market lows this morning. One has to go back to 2005 and 2006 to find comparable trading.
These were bullish periods and generally Vix stayed down for awhile.
That is to say that the initial drop to these levels was not a market peak. Higher highs ahead?
Yesterday offered the possibility of being an exhaustion day, but the volume turned out too low IMO.
In fact, while volume was up, it still seemed kinda low for the move we had. Not sure how to interpret.
I saw some commentary on short squeezing. I can see that for the R2K, but I have trouble imagining that there was a lot of short in the S&P.
We hit my upper Keltner band this morning on the NYMO chart.
Could see resistance here, but bulls could also start pushing it up.
NYMO is a long way from overbought.
The upside target for the inverse head and shoulders is marked a little above.
The megaphone pattern caused some pause but was blown away yesterday.
I pointed out the parabolic shape developing in SPY yesterday.
Odds of a mania may be ticking up here.
The higher it goes, the more underinvested fund managers have to participate.
Janet is probably a ways away from giving an irrational exuberance speech.
I jumped in yesterday but have a tight stop on in case we get an NFP turn.
I would like to see a correction in the days ahead, but given the above I imagine it will be bought.