Rolling Top and More
The May – October rolling top continues to unfold. Last Wednesday we saw a test of the 1635/1641 swing area on the S&P. At the moment rallys to the 1677 area should suffice. A close under 1635 would point to a tight trading range of 1605 to 1641 for the period up to September 19th. We remain in a defensive posture, short stocks, long a little gold and t-bonds, and neutral the dollar.