Today stocks continued to show their buoyancy, with the, now customary, late day pull back the only thing keeping the bears from going back into hibernation. Just like Monday, stocks rallied to start the session, and spent most of the day at or around their highs. FOSL soared some 32% creating some tremendous profits for call holders:
The $90 strike from $.45 to $5.10
The $95 strike from $.27 to $2.50.
The question now is when will this market pull back. We've had a strong reversal since mid-day on Thursday, after stocks were down close to 2%, and haven't looked back.
Today the SPY hit $140.92 before dropping $.50 into the close. If you look at the chart below you can see exactly why that happened.
If we can trust this channel, at some point the SPY will be coming back down below $140, and possibly kissing $136.80 -$137.40 before heading back over $140 to ultimately make new highs for the year.