The S&P has broken to new highs. Contrarians lick their lips and start shorting. Trend traders add to their positions. Given the madness of the market and the national mood and the bizarre political situation it’s not something we would say go all in for. But for us it’s sufficient signal to scale in. Stay hyper alert and be ready to jump — in or out. As our method is completely flexible we never mind admitting an unsucessful trade and bailing out.
The PnF method looks for a target of 2399. That seems reasonable to us, especially if the Congress actually does something like an infrastructure program. They could have done such a program 5 or 6 years ago, but Obama might have got the credit and that would never do.