OK sports fans what we saw at one minute till End of Day was a hardcore bid to make 2500 which was met by an equal amount of offers. It was a goal-line push at the one yard line. So what does this tell us? Almost absolutely nothing! Hurricane hits and hurricanes coming - no effect. Missiles flying over Japan - nothing. Bomb goes off in London subway - nothing. So let us conclude that 'headline risk' is off the table. Let us also conclude that 'economic data risk' is off the table. Fed policy risk - off the table. Geo-Political risk - off the table. Currency risk - off the table. Bonds flattening - who cares. Credit default risk - who's listening. Case Shiller PE at 30.6 - an oldie but goodie. Price is truth and time is the ultimate keeper of that truth. So what do we do now? We straddle it! The range going into 9/18 will be 2494.4 - 2506.5 so you can place your bets inside the bars short term or outside the bars for medium term. Use the strategy you are most familiar with and feel comfortable executing and do it in small bites. Look for a break in the range before committing more money to a direction.
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