Currently: Long Looking to: Sell / short @ 3,909
As of 1/22/21 close: 3,834.25
LAST WEEK: We suggested covering shorts / getting long at last weeks levels with stops on longs on a close below 3,747 and with a target of 3,951 for selling longs.
UPDATE: So, Biden, Harris and Yellen are all in place in D.C. That may well mean that we see higher taxes and regulations, but better trade relations with the rest of the world and a market-friendly Federal Reserve. The net result could be a strong stock market and the chart here supports that idea.
Although we see S&P futures as having more upside potential in the intermediate-term, they may pause and start to pull back at 3,909 3,930 in the short-term. A pullback should test out support at 3,664 3,711.
We would look to hedge long positions or short at 3,909 with stops on shorts on a close above 3,931 and with a covering target of 3,711. We would look to get long on an extended dip to 3,664 with stops on a close below 3,660 and with an upside target of 4,008.