Good morning : todays DMS is indicated bullish as measured by DTE- and calculated by DSI- *Todays /Tomorrow’s DMP=.58/1.23- Todays DMP is VERY LOW indicating a S/T- algorithmic imbalance of sell/buy signals today only- (3:1)
SPX R1=2694-95- we would sell/fade/SS- this level today for a quick trade lower lasting only 1-2 days/ (20-40 SP points)-
SPX S1=2650- would cover any open MKT short position here.
SPX S2=2638-40- would BUY MKT here aggressively.
So, sure were generally constructive on the SPX/MKT and think it will move generally higher before “materially” lower over the next several days/weeks, however- we also understand that this process is likely to involve S/T periods of disruption that are tradeable events within the context of a generally favorable Q/T-A backdrop.
I understand, this kind of tactical trading isn’t for everyone, however our models are designed to exploit S/T inefficiencies in the MKT- and take advantage of brief interruptions while staying committed to one side of the MKT or the other.
As such, we could see the SPX/MKT- move higher today to R1- which would precede a brief pull-back lasting only 1-2 days.
Traders/PM’s are advised to look for the SPX/MKT to trade higher into this afternoon/tmrw-and then perhaps establish a tactical hedge/MKT short position @ R1- should we get there.