Last Hurrah of the Bull, or the Next Leg Up?

S&P 500 INDEX MODEL TRADING PLANS for MON. 06/05

The precarious rally of the last month has been baffling many, with the lack of the breadth of the rally while it still managed to keep going up on the run up in just a handful of big-tech names. With the major news cycles in the rear view mirror, the move up could be losing steam but if not then it could be indicative of yet another leg up that could obliterate the shorts.

If you are a bull, it may be prudent to take some profits off the table; if you a bear, caution is warranted before establishing any new shorts.

Positional Trading Models: Our positional models indicate staying flat for today. No specific positional trading plans are indicated.

By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops - if any - being active in the overnight session.

Aggressive/Intraday Models: Our aggressive, intraday models indicate the trading plans below for today.

Aggressive, Intraday Trading Plans for MON. 06/05:

For today, our aggressive intraday models indicate going long on a break above 4291 or 4268 with a 9-point trailing stop, and going short on a break below 4300, 4288, 4278, or 4264 with a 9-point trailing stop. 

Models indicate explicit short exits on a break above 4303 or 4281. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 10:16am ET or later.