Good morning traders. Market is gaping above the SPY 114.50 resistance which was a very important technical level last week. For today’s price action I am going to use the level as my pivot. I am going to be long above it and look to lighten up or get flat if the market starts to fail. I don’t really want to be short this market unless after there is a very strong down move under 114.5 which makes it clear short term momentum has shifted. If the market is able to consolidate above 114.5 I would expect for us to see 117.75.

Two themes I am going to be looking for this week are two see if some rotation exists between financials/ commodities and tech which have been the clear leader. If this rally is going to continue at these prices I expect to see other sectors start to follow.

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SPY Levels

115.13

116

117.75

114.5

113.4