Daily Commentary: February 08, 2024

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SPY $500 In Sight

Posted by Pete Stolcers on February 08
www.oneoption.com

The news is light and this psychological level will act as a magnet. Day trade from the long side, but keep your swing trades light. The market is due to compress or dip.

PRE-OPEN MARKET COMMENTS THURSDAY – The SPY is within striking distance of $500 and it wants to go there. The news is light so there is nothing to stand in the way. That is a psychological resistance level and after a big rally the market is due for a pause.

I am bullish, I just feel that I can capture the rest of the remaining upside day trading. I don’t feel we have much farther to run before the market compresses or dips. Not loading up on swing trades provides me with flexibility and clarity. When I see the compression or the dip, I will know how aggressive buyers are and then I will form a game plan.

Down opens are the best scenario. That gives us time to evaluate the action, relative strength is easier to find and when support is established, we have a better entry price and we are joining the longer term up trend.

Gaps up from this point will be risky. The market has run far and the odds of a gap reversal are high at this level after a big move. Make triple sure the gap holds before trying longs.

Initial jobless claims were a little higher last week, but they are right back down this morning.

Support is at SPY $490 and resistance is at $500.

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