Lucky bulls rebound from 1057

Wall Street staged a comeback after an early dip in anticipation of good earnings from Apple and speculation of changes in monetary policy on excess bank reserves, reducing the interest rate from 0.25% to 0. We initially had a dip in equities as Goldman Sachs reported a big drop in quarterly earnings, along with weak revenues reported from IBM. S&P500 up 12.23 points closed at 1083.58

Market ends RIGHT at the 1085 resistance which I placed my stop loss order, but nonetheless we end at the highs of the day confirming strength from the bulls. We will see if we pull back or break out from this levels on the S&P500 tomorrow.

I sold the rest of SPXU at the best price when the market bottom today, that is a 9% gain in three days. This is a very impressive trade consider I short this market at market high 1097 on last Thursday and cover today at the market bottom 1057. The only regret is that I missed today's rally because I set my buy limit order at 1047 instead of 1057. , I am very sure I will long this market at 1057 If I day trade today , Unfortunately, I always set my limit order more prudent if I preset the order in advance.

The rally today give us a confirmation for this rally because if a market can bounce at the 38% or 50%  fib retractment level, it ensure you that the momentum of the rally still intact. If market can break critical resistance 1100, then we may see the second leg of this rally soon.

For people who miss the buying opportunity today at 1057 like me. It's hard to play this market now. You can't short a market that just rebound from 55% fib retractment level because the momentum is just too intensive. If you long right now you will miss the profit cushion from 1057 to 1083, the risk reward ratio surely not in our favor. The only thing I can do is waiting for another opportunity.

Watch resistances 1100 and support 1075, 1070, 1065, 1055. In the meantime, I doubt the market will retest the above support especially 1065 and 1055 because the short term momentum is .............UP. But hay! who knows, I always tell people to read and listen to the market instead of predicting it.