I am expecting a pullback in the near-term due to over bought daily charts and over bullish sentiment, but the fact is that SPX is in blue sky and measures to 2410 based on the pattern breakout.
If it fails, it fails. HUI failed a blue sky break back in 2011. Nothing is ever assured, and this is after all, a suck in of some kind. But even a suck in can be lucrative if you’re early and you routinely take profits and re-seed positions.
This can be considered as a trade idea on SPY, with any pullback to or toward the equivalent of 2100 a buying opportunity. Stop losses should be used to suit risk tolerance beginning below 2090.
Caveats: <insert here> myriad arguments about valuations, monetary policy variables and declining summer volumes. But I am going against my own monetarily conservative nature and conceding that momentum, fueled by dumb and desperate money, is a play. Modern investment has been financially engineered into a casino after all.
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