We can’t remember a time where levels worked so well – anecdotally speaking — it seems to us that market just keeps getting more technical. Praise HFTs? Since this rally started we have had only 2 fade spots on our newsletter (and both were posted also on stream) . The first was to fade the jobs number pop last Friday, and today was 122 $SPY resistance.
Pretty amazing how these “obvious” spots are working. Also a note of caution for those who we have heard like to use the stream as a contrarian indicator — we were pleasantly surprised to see the short bias today. Watch who you fade!
First gap fill is near $SPY 120 and second support is near 50SMA (and second gap fill near 117.25). Let’s see how much the bears can push. The most bullish scenario for us would be a fade to around 117.5 to put some fear into the bulls and then a reversal higher out of this range.