TGI Friday the 13th – Bulls are Feeling Lucky

We're still waiting on a few of bounce lines:

  • Dow 23,800 (weak) and 24,200 (strong)
  • S&P 2,640 (weak) and 2,684 (strong)
  • Nasdaq 6,500 (weak) and 6,700 (strong)
  • NYSE 12,450 (weak) and 12,600 (strong)
  • Russell 1,520 (weak) and 1,540 (strong)

Even with this morning's pre-market rally, we still have to take the same 3 red levels we were looking for yesterday so we'll have to remain well-hedged into the weekend because we don't change our stance until at least 3 of five of the Strong Bounce levels are captured AND HELD – for at least one full day after a close above.

As you can see on the chart, 2,693 is the 50-day moving average on the S&P 500 so that's the real goal as it needs to be over that line to avoid (or at least put off) forming a "death cross" below the 200 dma into July earnings.  Remember, we predicted strong bank earnings in our Big Bank Theory Report last Thursday and our Trade Idea for Citigroup (C) is looking very good as they have already jumped $4 since we made the play:

The markets are generally back to bullish as Trump walks back threats against Syria and, more importantly, says he may want to put us back in the Trans Pacific Partnership (…
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