S&P Trying To Break The 1000 Mark
Stocks are up slightly in today’s trading action. With the futures up big early this morning, it seemed that the 1000 mark on the S&P was a sure thing, but again just like the second half of last week, we’re struggling to get there.
Even despite the ferocity of the rally over the last few weeks, I believe this has to be considered a victory for the bears. With that said, shorts are continuing to get blasted and this trend could easily continue. I’m still definitely net short and looking to add to my shorts, but I’m waiting to see if we break the 1000 level. If we break the 1000 level, everyone expects the computers to trigger their buy actions and the broad index should shoot higher in a very similar fashion to what happened when we broke the 950 mark recently. Is the market action really this predictable or are we all kidding ourselves?
I still have a hedge on my net short position with a long position in SSO since I thought last week that a blast through 1000 was a sure thing. While we linger in this area just below 1000, I will continue to wait and see.