After showing resiliency the second half of last week the market again did so yesterday. The chart of the S&P 500 shows this best:
In addition to teh wedging formation on chart yesterday (see blog post from yesterday), there is also horizontal resistance hera at 1261. A good push above here could easily get the index to 1280 followed by something around the 1300 mark.
The 1300 area however has tons of resistance that a meaningful break above it is difficult to imagine, at least as of now. So the SPX has a little over 3% of upside potential. For longer-term investors that may not be worth playing, but for Bucket 1 and Bucket 2 that is good enough to add some defined positions, if and when we should break and hold above the 1261 mark.
For today we want to potentially add some SPY long for Bucket 2, NFLX long for Bucket 2, and CREE long for Bucket 3.