Closing In On The High

Europe is up strongly again. Perhaps I was wrong in labeling it a relief rally yesterday. Today seems like some nice follow through. Commodities, energy, and metals are looking strong as well. S&P futures have hit a new high in the overnight session, so there is the possibility of a gap and sell off. 1280 seems like a big level for the market to punch through. 1287 is a Fibonacci target that keeps popping up, and it is now lining up with an upper channel line on my 60 min chart (closer to 1285). Yesterday I was able to pick up some SPY 128 calls on the mid-day breakdown, so I'll be taking some profits on that tranche and hedging the rest with BGZ. At this point, any trade below 1274 would be the first indication that a meaningful correction was starting. When I got short the other day, the target was 1173. If a correction starts, that number stands. We are historically overbought.