The SPY, S&P500, Nasdaq and Dow futures are all gapping up this morning, so this mornings post is pretty straight forward. We’ll take some of our profits off this morning, and let some ride, after we reassess relative strength.
Price action consolidated in time, remaining above the 21d moving average, rather than pulling back to the 200d. We thought the latter would get tested this week, as MACD continues to fade.
RSI leads the way instead, as it prints above 50.
The 21d is still key for now. Staying above equates to continuation of the bullish trend. A break below would signal a return to the 200d. Bulls are still in charge, so we will trade accordingly and reassess this morning.
Friday’s distribution day or higher volume was most likely due to options expiration and the S&P500 rebalancing anticipated.
Futures are currently at recent highs 3144.00 (+33pts).
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