New Market High – News Vacuum Favors Upward Momentum

Posted 9:20 ET AM - Yesterday the S&P 500 jumped to an all-time high on the open and it spent the rest of the day in a fairly tight range. Stocks closed on their high and the market is comfortable with the recent rate hike. The news is very light and that favors the upward momentum. Swing traders should have all of their bullish put spreads on. I've been telling you that this window of opportunity would be very brief and I've been suggesting this strategy for the last week. Now just sit back and let time decay work its magic. Day traders need to wait for support to be established today. Once stocks are above the first hour high you can use that as your guide. Trade from the long side if the market is above the first hour high and stop out if the market falls below it. In the event that we see a retracement this morning (unlikely) be patient and buy the dip. We are in a news vacuum and the action will be light. Welcome to the summer doldrums. Earnings season is only a few weeks away and buyers will remain engaged. If we were going to see profit-taking it would've happened after the FOMC statement. Tech stocks performed well Monday and there are still some nice opportunities in that sector. Look for an upward bias with low volume this week. . .

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