Morning folks market looking at a slightly negative open so far with the spy down around .2% as traders await the latest reading on unemployment claims and then the speech tonight by the President. Yesterday we had a huge short squeeze that didnt let down even for 15 minutes yesterday. Lot of charts and the market looked to breakdown and ended up catching everyone and ripping to the upside. Overall its been a nice unrelenting rally for the past 2 days with few opportunites to even add on dips which makes the tape a bit tricky as you always feel like your chasing even though you really arent. Its looking like if the bulls want to keep the party going they are going to need to break spx 1200 which could throw us right back at the 1230 range. Remember not to get to giddy over a rally….last time we had one bulls got their heads chopped off with a huge swift mvoe to the downside. For now we are in a bit of a range as the market settles itself and forms a new base and that should be in your mind. With that in mind we are starting to get to areas where holding too many positions overnight can be risky so Ill be limiting mine to max 1-2 positions and stick to daytrades till we get a break of the range of a pullback.
