Quick one this AM, and appologies for the lack of a morning video today.
Not alot of new stuff to talk about today…Thursday's ECB meeting (50 bps cut expected) and Friday's socialists unite announcement remain front and center.
We want to be in maximum levels of cash and wait for better opportunities
The mother chart of the S&P 500 still looks the same…although important to note here is that yesterday was the third day of 'consolidation' after last week's massive ramp higher. Stocks can work off their overbought levels either in price or in time….i.e. by a move lower or just treading water and then go higher again. So far we are doing the latter.
Our final final upside target could be near 1340 if this all works out.
The transports along with the financials (and of course the dollar above all) remain our key tells.
The transports as looked at through the IYT etf look precarious for more upside should they be able to overcome resistance here.