Futures were under some selling last night, but as expected, the master planners didn’t want their peeps heading into a long weekend on a down note.
I am not sure they will hold gains, but this is telling us that the plan is going as planned, being we aren’t giving back the gains over the past 2 days.
I would NOT chase the long side here, that trade was over 200 lower than current prices.
Wait for the last of the bears to get squeezed and look to short.
That may not come until we see spx 4200/4300.
So don’t try and rush into the short side, let things play out and wait for sentiment to get back to normal levels, and wait for the next setup.
If already long, I would start to scale out of the trade, maybe taking 1/3 off at 4100-ish and placing a stop at the entry for the remainder of the position.
4200 would be the next spot to layer 1/3 out.
For today, the bears need to get the price below 4050 for a reaction trade down to a more important support zone between 4020/3978.
The bulls need to break through the 4092 resistance for a reaction trade up 4120/4138.
We are definitely due for some backing and filling, but as I have said a number of times, the bulls will stay at the party until they are kicked out.
Have a great long weekend!! -Gary Dean
SPX Hourly Technicals
Divergences: No Divergences
Resistance Pivots: R1-4092 R2-4120 R3-4138
Support Pivots: S1-4050 S2-4020 S3-3978
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