- we remain of the opinion that the 50 sma (yellow line) on the S&P 500 is a good support target before potentially rallying up to the 1270 area or so.
- in the immediate term we are extended here so a rally straight up to 1270ish from these levels is more difficult to imagine
- but a pullback to 1170 or so would allow for better risk/reward for bucket 2 longs
- that is why it is in our opinion too risky to play upside breakouts on indiviidual stocks.
- if and when we should solidly get above 1220 on a daily close…or if we get down to 1170…better long-side entries would appear.
