- The big upside reversal Thursday afternoon with follow-through on Friday was significant.
- We closed our SPY short position Friday afternoon and are now positioned a little long SPY.
- Next upside target on S&P 500 for us is 1405 and we see a good chance the index can hit 1420 in coming days to maybe 2 weeks or so:
- On the daily charts all major U.S. and European equity indices had outside days on Friday and good looking strong weekly closes:
- All S&P 500 sectors are again looking solid for more upside:
- Beyond the next few weeks however things look more worrisome as small cap stocks are still lagging.
- The VIX volatility index is below 16 again, which historically is not a great spot to buy stocks in this environment
