We have seen this plenty of times in the past month where SPX breaks hard into the 1890’s only to give up the gains before the session close and finish the day instead below 1883.

So far today that hasn’t happened. I came into today net short, but that was more out of managing the downside risk that was very real given the heavy distribution that we have seen for almost three months now. However, if today’s gains can hold, there is some excitement that can be had that actual market direction can be established finally after a level of market monotony that hasn’t been seen in years. 

Assuming as much, I’ll easily flip to the long side (already have one position at work today) and will look to get even more bullish in the days ahead. 

Here is the current list of trade setups for this week:

bullish watch-list 5-12-14 

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