I'll keep this update short as this is a holiday week, but don't fall asleep as I'm expecting a pullback to start right after Christmas. A typical trick by SkyNet is to drop it around holidays when the bears aren't watching, and I think it's going to happen this time around as well. There's a FP on the SPY from after the close on Friday. It's showing a high of 322.35, which from the looks of this mornings rally it could be hit today or tomorrow. The typical trick is to put out some upside or downside FP and go the opposite direction first and come back later to hit the FP, that's not looking like the plan for this one. The QQQ also has a FP on it of 212.50, which again might get hit today or tomorrow.
Speaking of tomorrow, don't forget that the market will close early at 1pm EST as it's Christmas Eve. Ok, not much to add for today but I'll be watching closely for that FP to get hit. Today or tomorrow does look to be the likely time period but don't get lured into thinking it has too hit in the next day or so as again, most of the time the market starts off the opposite direction of the FP and comes back to it later.
It's the trick SkyNet loves to tease us with as it knows how obvious the FP is... especially for those looking for them. My plan is to wait until tomorrow at the close to look for a short. I might even wait for Thursday, not sure? I'd like to see the FP put in the high of course but we all know that they are just targets to be hit and not always "turning points".
We saw that recently with the hit of the FP on IWM, which was 164.34 and the day it hit (and pierced through) the final high that day was 165.10, and it did pullback small that day but went back up the next day to retest that high by putting in a slightly lower one, and then pulled back a second time. But that was about all as after that it went sideways to up into the current higher high of 166.41 last Friday. Did the FP work? Sure, as if you were long you knew when to get out and go to cash. But it didn't produce an immediate turn back down, so for the bears wanting to short it they weren't happy.
This current new FP on the SPY could get hit and pieced (that's common) and the market linger up here for a few days. So don't base a decision to short solely on the hit of the FP. In fact I'm basing my choice to look for a short soon based on many other factors that I won't go into this morning. Have a great Monday and may God Bless you and your family.
