Until the lower trend line is broken, S&P futures can go to 1230 or higher.
We are at highs while the percentage of S&P stocks above their 50 day MA is strongly deteriorating.
We are at 52 week highs while the number of S&P stocks at 52 week highs is strongly deteriorating. Note the April highs had 166 stocks at 52 week highs (not shown) vs. the Nov. high reading of 140, for yet more divergence.
The VIX is at the bottom of its 2-standard deviation channel and is building momentum for a breakout to the upside.
In my opinion, the above charts say to proceed with caution. Therefore I am taking advantage of a relatively low VIX to use calls for upside exposure while holding larger short positions with inverse ETFs against them for a net negative delta. Thus my risk is quantified on both sides.
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