Starting the day to find a gorgeous impulse down in the overnight futures session, and realizing that if I just went all-in on the Vietnam ETF (VNM), I'd have already met my yearly profit goal. Since 11/02 it's up 40%. It must be because I found a new Vietnamese restaurant a few towns away from me and I've been a pretty regular customer ever since. Their pho is great, and now I'm turning my friends onto it too.
Regardless of the overnight action, the S&P is best viewed from a longer term perspective starting with the highs and lows of last year and moving forward. 1422.38, 1266.74, 1471.51, 1343.35 -- each of these higher highs and higher lows seems to be forming a rising wedge that looks nearly complete. Higher levels could still be coming, but there is a lot of space below the market that could get tested at any time.
I laugh each time I cite one set of levels, whether higher or lower, but not the other side, as I did last Friday. It seems a high percentage of time the market goes in the direction that I didn't mention, so it might be fun to fade any one-sided commentary.
Futures have taken back almost a perfect 61.8% retrace of Friday's rally. That would be about 1504 on the cash index. I'd like to be a buyer of calls, but I will be wary of 1496.76. A break of that spot could set the stage for a deeper retrace. I still have a higher Fib extension target of 1519.