S&P500 broke three resistance in one day, 1085, 1090, 1097. I have already mention that the momentum of this up leg is very powerful, in addition, the earning report of Intel, and other companies gave a push to this rally. Usually, I won't short this kind of market on the way up, instead, I will short it on the way down. However, in this morning my limit order was triggered when market went up to 1097. Now I am holding SPXU.
Intel's earning after hour push the market higher. Next critical resistances are 1102, 1105, 1112, 1115. We have to be cautious about 1112 and 1115 two resistances. 1112 is 200 days moving average. And 1115 is the 50% fib retractment level from 1220 high to 1010 low. If market can go this far tomorrow, I don't think it can sustain the over extended rally. If you are day trading tomorrow, wait until market come close to these two resistances combine with extreme 5, 15, 60 minutes overbought RSI and stochastics. Risk reward ratio is definitely on the bear side.
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