Earlier this week in our Market Preview, we highlighted a few important points; potential (possible) overhead resistance, positive March FOMC performance, the positive performance for the SPY when an FOMC meeting falls on the same week as options expiration, and the V-rally day count.
So far the week is slightly positive, the FOMC is out of the way, and the open gap from the beginning of the year is filled as of this morning in the pre-market.
We mentioned in our last post that the previous V-rallies have lasted about 26 days each, we are on day 24. You couple that with the charts below and the fact that the week after March expiration tends to be weak, and you have yourself an interesting short-term situation.
- My opinion is subject to change as new information comes in.
- Not being overly excited to get aggressively long here does not mean to short.
- Animal spirits and the fear of missing out is something that can’t be seen on the charts and without a doubt, it can’t be ignored.