The market is getting interesting here. A strong case can be made to start protecting against an SP 500 correction. But on the other hand, there can still be room to run to 1210 or so.
The weekly SP500 charts indicates to begin capturing profits or start protecting.
The SP500 is very near the 200SMA.
However, when looking at the monthly, the 62 SMA indicates the resistance is closer to the weekly 320 SMA.
Regardless, we are near a point to ease up on the giddiness, and add some caution.
The daily chart needs to thrust past its current area to get a move near the upper end of the weekly/monthly resistance (ie 1200).
A look at the pre-market (at 12:40AM eastern) indicates a strong open. China is up +1%, so there must be really good China data out. If we can get the thrust past the daily resistance, we may get 12o0 on the SP 500.
With this potential thrust, I am looking to take some profits and add a protective position via the 120 SPY Puts.
(Keep in mind, any potential correction IMO is very limited due to valuations. I am hard pressed to find a scenario to which the SPS500 breaks through the 1150 level.)
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