Having passed 4000, the S&P 500 (SPX) has its sights on 4100 and came within two points of it yesterday, explains Ian Murphy of MurphyTrading.com.
This market is like a surfer on dope, every day brings a new high!
Meanwhile, the divergence between the constituents of the S&P 500 and the broader market continue to build. The red line of pessimism (bottom above) picked up in the past two sessions, closing at 6.56% yesterday. Not a cause for concern, at least not yet.
The open positions in Micro e-Mini futures (CME:MES) and the ETF (ARCX:SSO) are doing well with both protective stops now above the point of entry. Futures are up 3.17% and SSO has gained 6.34%.
There is no doubt we are going to have a pullback at some point but each nudge upwards of the trailing stop locks in the gains while allowing room for a ‘normal’ pullback within the average range.
Learn more about Ian Murphy at MurphyTrading.com.
