In my market update last week I had mentioned that S&P may find support at 1325. It did. 1325 was Angle support and market had high probability of holding 1325. On Thursday while market was going down we had Puts trades in our Portfolio. These trades were in profit. Members were sent alert to start locking gains in these Puts trades one by one as S&P was approaching 1325. At that time S&P was trading at 1328 and ES had already crossed 1325 and was approaching 1320. After locking gains in these Puts later that day we went long via Calls in other stocks such as ORLY.
On Friday market rallied upward as expected. This rally on Friday besides short-covering was also based on genuine buying interest in selected stocks. This means that as market moves upward more buyers will show up and will take the market to higher level.
On Friday S&P closed at 1356.78. By Wednesday I expect S&P to cross 1365. Therefore 1365 will be on my radar and close of 1365 on any day will give me clue that market wants to go higher. After 1365 I will look for 1372-1375 to hold and close above. 1375 is the level from where the market had come down past week. If S&P closes above 1375 on any day then it will tell me that S&P wants to go to 1390 target which is a high probability target and 1405 is also possible. These two targets were mentioned in my last week post.
But only God knows better.