S&P 1100: The Market's Next Line in the Sand

Includes: DIA, QQQ, SPY
by: TraderMark

Just another week of no fear. The only question anyone asks now is, 'should I buy now or should I buy in 15 minutes?'

Watching these futures overnight is bemusing. Much as we saw in April and May 2009, we have -6 and -7 on S&P futures deep in the night and then than they, by forces beyond our comprehension, tick up between 7 AM and 9 AM. Next thing you know it's 9:30 AM and we're positive. Magic.

We have a very concise and playable range, and since selling off is no longer an option we await the flood of buying once S&P 1100 is clearly broken. Or we see if that little gap is filled at S&P 1075, which we buy.

Either way, there is only one strategy: buy. It's just a matter of at which point, how much and when.