Happy Friday from Mr. B
The NYMO cycle appears to be up.
A positive close today will confirm.
In spite of wicked price action, yesterday was the first positive close (barely) in some time.
The benchmark price at the cycle low (May 13) is SPX 2801.43 and has already been handily exceeded.
Price knocked off the last of my near up gap targets shortly after the open and is bumping into the 50 day MA as I write.
It has been a blistering surge since the Monday low.
We have opened a fresh down gap target at yesterday's close.
The next up gap targets are a good 60-70 handles higher. The bulls will have their work cut out to capture them.
The mid-May highs just above 2890 look interesting. Other than stopping out some truly stubborn shorts, the volume hole above could provide resistance.
Price may need to consolidate awhile around the middle keltner here before making a decision to go after the April highs or alternatively the Monday low as the case may be.
Monday's low is now really important.
We have tested the 200 day MA (again...).
Closes below Monday's low would constitute a failed test and dip buyers/patient longs could be moved to liquidate opening up a fair bit of downside.
Sometimes NFP days set up reversals. So, I am curious to see what trade does after the Europe close today into next week.
I am long SPX and neutral R2K (long and short).
I worked long hedges against shorts Monday and Tuesday, which turned out to be a good thing.
The SPX short was closed leaving the long to which I added.
The R2K short hasn't stopped out yet (hmmm...). Probably today. I will have capacity to add more long on a pullback next week if it does.
No doubt being hedged left money on the table with price on a rocket, but we're trying to stick to the program.