Boo's Clues

I've been looking so long at these pictures of you
That I almost believe that they're real
I've been living so long with my pictures of you
That I almost believe that the pictures are all I can feel
--The Cure

Over the past year, sustained downside market action has been rare. Thus the recent heavy action has stood out.

Chartgazing, however, suggests nothing for the bulls to get too concerned about yet, as we've had a couple other episodes like this (7-10% pullbacks) off the March lows.

Lotsa traders are watching SPX 1080 as near term support. We bounced off 1080 today. The old technical adage is that support gets weaker with each visit, as additional demand is stripped away at this level that could offer future support.

My eyes gravitate to the 200 day MA at about 1025, and I wonder whether Boo might get his groove on down to this area which constitutes another discernable zone of support.

Personally, I kicked out all longs a coupla wks back as this uptrend seemed to be running on vapor, and many trend exhaustion signals were sounding. It remains to be seen, of course, whether that was the right thing to do.

Currently, I do have some short exposure, and may use further lifts to add some more, as my sense is that the tape's tenor may be changing in Boo's favor.

position in SPX