The markets took a little rest after yesterday pop and going into Friday option expiration the technicals are marginally bullish. Tomorrow we commence the year end period that is known as the "Santa Claus Rally" due to the statistically strong momentum demonstrated in this time window over the past 25 years. Yes, there have been years when this expectation was stunningly wrong but for multiple reasons the bulls have about an 8 to 5 edge for the next 2 weeks.
Looking at the M3 SPY Trader the signals are bullish.
The SPY TrendX closed the day on the zero line (neutral) so the net result is positive.
I've turned on the AUTO STOP feature on the latest M3 sort just to filter out the positions invalidated by the program. And yes, the program was bullish on the 17th going into the 18th.
The decision to adopt a cash stance was strictly discretionary on my part.
Sometimes M3 knows best.
