The box play continues. I have to admit that I totally missed today’s strong move. I have some small longs but closed my SPY and TNA Longs yesterday. That was a mistake in retrospect. Trading in the middle of the chart is so easy. Too bad I don’t have a luxury to put my trades there. I need to do my work on the right end of the chart.

However, the breakout from the down trend channel offers us some new options. In case we see a pullback to 106 area but not bellow, this market is a short-term buy. We might be looking for a move up to the 110-113 area. That is the zone where shorts will be placed in the game again. Thus the Bulls need some very good news to push the market higher.  I still have a feeling that the July lows could be tested until this correction will be end.

The money stream is lagging. That bothers me a bit.

Money is running from the bonds. Soon the programs start to sell the bonds too and float the money to other asset classes. It won’t be far from here when grand mothers will be surprised what happened to their safe-heaven bonds.

Best performing sectors

Lagging sectors

Peace,

Matias