Trading Range Period in View…

Now that the market has expressed what it views as a value point, unless some new demand factors appear we probably are going to need to adjust to some sort of trading range. A new Fed Chair will need to be finalized and that process will no doubt be driven by the mood of the President whose mood is highly correlated to what the market is doing. So, a lot of cross currents will be facing the markets as the lower interest rate/de-regulation crowd remains very bullish, but at the moment on their heels.

As such, I will be thinking an S&P 500 trading range between now and mid-March of 6420 – 6920.

Model Update at 1:20 PM CST:

Model unloaded some longs today went back to a more negative ratio of Long/Short/Reserve Ratio of 23/62/15 at this hour as markets are pressing at the top of the viewed trading range.