- $SPY is back to the price it was at before the Brexit ever happened.
- The market is still in an 18 month trading range on the verge of breaking out to new all time highs.
- If the Brexit can’t bring the market down what can? Rallying after bad news is bullish.
- We had a very high volume sell off followed by a high volume rally last week. That created a ‘V’ shaped bottom last week which is bullish.
- The more times that all time highs in price are tested the greater the odds for a breakout to new all time highs.
- The average true range expanded last week on the downside and upside. This was very fast trading on both the short and long side. The long side won clearly.
- MACD is set up for a bullish crossover.
- Slow Stochastic is under a bullish crossover.
- The $SPY has room to run higher to all time highs again, the 70RSI, and $VIX 13 before the high potential for a pullback.
- Brexit was an over reaction to an event that did not hold the risk that was believed as I discussed last week.
I am currently short $TLT via $TBT and I am looking to buy dips in stock indexes.