1. After the long run up from the recent bottom the risk/reward has shifted against the bulls. The downside risk of a pull back is  greater than the potential upside for bulls to gain more profits at these lofty levels.

  2. In the short term time frame $SPY has begun a trading range with basically a $199 support and $201.00 resistance. This is the first five day trading range since the bounce off the near term bottom at $191 and near the 30 RSI level.

  3. The stock market indexes need to create a longer price base here before the potential of higher prices are sustainable.

  4. Historically the 70 RSI on the daily chart has acted as resistance as an overbought indicator.

  5. $SPY $200 and $SPX 2000 are going to be key resistance levels here.

  6. The Geo-political risks always create the potential of a sharp sudden sell off with any unexpected news that is not already priced in.

  7. I would be a buyer of a pull back to the 50 RSI and/or the 50 day sma level.

  8. I would open a weekly bearish credit spread at-the-money with a break above the 70 RSI.

  9. What the hell does volume have to do with these last two $SPY rallies? Why do so many still mention it? They were both low volume rallies. Only price pays, you can’t trade volume.

  10. All the doomsayers with all their predictions are just noise. Trade price, trade a robust system, follow the chart and it is possible to make money in the markets.

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