As Bernanke opened his mouth the markets rallied - what a surprise woooah and ended in the green zone. The thing right now is that the markets is overbought on the daily charts and the volume on the rally since 1295 is weak overall - nothing special. But we can still trade up on low volume as we have seen before , but my target of 1350 got reached and we actually popped higher to 1356 SPX.
The big question for me is if we just KEEP rallying to my target of 1360-1380 which is my top target right now for the SPX or we will get the pullback I am looking for before to 1325 objective target.
So what I did yesterday were adding last shorts on SPX before close at 1356 and then hoping I was a few point wrong in my calculation of the objective top at 1350. We could easy dip below 1350 in the near term - but again if we move any much higher I will take a few % loss and move on - thats how I see it.
I'm still playing lots of small caps including SOMX which I love right now - SOMX (2.79 long) looks brilliant for a swing play.
So overall still looking for 1325 to be tested sometimes next week and after this pullback I think we will make new highs and move into 1360-1380 SPX my next target. So how do you play this? Well get long a few good small caps with technicals good setup and good fundamentals and get long a few shorts for hedge if we get the pullback - then its a good win/win situation.
Have a nice day
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