Hello traders!

The SP500 rallied after that overnight pullback which helped a non-inside/chop day to happen and the move above the area I talked about into our first target which is important for tomorrow.

$6940-$6950 is the zone to watch here tomorrow with the all time high at $6,950. I do think we trade to $7,000 but I don’t trade the futures markets at all but I will trade $SPY ( ▲ 0.23% ) and $QQQ ( ▼ 0.32% ) puts/calls instead because you don’t have to be exact on the entries and you still get leverage.

I know people see new highs and think that this is the time to add risk but in reality the time to add risk on the markets is when nobody wants to do it then you sell it to other when they all want it so I am scaling out of my longs on other ideas and if your read the free post on $EL ( ▼ 1.6% ) last night I told you all that resistance was coming and it did — again, this is why price-action matters and anyone that tells you that it doesn’t work or that they don’t have a price target is dangerous.

Tonight I have one new trade that I am going to put on tomorrow on a tech stock that has been lagging the market. I’ve seen some interest call flows in the name this week and the price-chart is as good as it gets.