Though we have gone through a lot of economic reports, not to mention Fed speak and the start of the Q2 earnings season, I’ve been trying to keep you bullish and keep you looking at the big picture. The trend in the Emini S&P 500 futures (CME:ESU14) is still up, so we want to buy weakness and go along for the ride upwards.
We warned you that there would be some downside this week and we saw it Monday and Tuesday. There was some profit taking and some traders got nervous with fears of a bigger correction. But as we said, the downside was limited and we went up from a morning low of 1958.70 to an afternoon high of 1968.20.
Once again, the MrTopStep 10-handle Rule was in effect, a phenomenon we’ve used for years on the floor and which you should use, too. It was a straight 10-handle run from low to high today.
Tomorrow look for a sideways market, with some back-and-fill action that might even give us PitBull’s Thursday/Friday low before the week of expiration. But we still expect to see the week end on a high note.
HIGH: 1968.20
LOW: 1958.70
LAST: 1967.25 UP 7 Handles
TOTAL VOLUME: 1.3mil Minis; 2.1k Bigs
MOC: BUY $300mil
If the S&P 500 (SNP:^GSPC) is going up, we want to go for the ride.
FOR TOMORROW:
Chain Store Sales
Jobless Claims
Wholesale Trade
EIA Natural Gas Report
30-Yr Bond Auction
Esther George Speaks
Stanley Fischer Speaks
Fed Balance Sheet
Money Supply
I tried to keep you bullish. I told you we were past all the big events, and that this week would see some down side.
My call today – buy weakness
10 Handle rule – 1968.25-1978.25