The gap filled perfectly at 1075; since this market has become nothing more than computers using technical measures we should at least have a cursory bounce here - Ive bought index ETFs and calls for the bounce (if and when). A move below S&P 1073 will have us out of these instruments... then we'll have to asses what the market does around 1071. There is some good support at S&P 1070ish... and below that the S&P 1040s. Below 1040 I will dust off that bear costumer with glee. Below 1020 ... ooh lala.
This trade is way too obvious, and each time I post an obvious trade I will put out the caveat ... in the old days obvious things did not work. Too many people doing the obvious thing, blew up in people's faces. These appear to not be the old days anymore. Until one day they will be again.
One day all these people chasing into the very obvious thing will have their giddy trading fingers blown off... but I've said that exact same thing for 4-5 months straight each time we see an obvious thing, and it has not happened. So we'll join the lemmings while we have our customary one foot out the door in case the old market ever reappears. I will be more than happy to lose some money on one of these obvious trades just to see the lemmings jump off the cliff en masse when the market finally is allowed to trap them.
When that happens I expect the pain to be fast and furious. But until then...