That's fairly normal and was to be expected this week. What we got was nearly a 2.5% rally for the $SPX over the course of the past two days. Definitely not a market I want to short, at least not right now. And while the rally was a quick one, be careful piling in long here. We've reached extensions and retracements show on today's daily chart that could put an end to the bull run but we'll need to see sell signals before attempting new put positions.
In the meantime it's a stock pickers market and Visa (V) is one that stood yesterday. The stock made new 52-week highs during Tuesday's session and with a daily Squeeze to back us I like the potential for getting to the 1.618% extension at $153.58.
United States Natural Gas (UNG) had a nice pop Tuesday and while we're approaching the mean on the daily charts we're looking for a bigger move from this trend. If we break below the December 14 low (a near perfect example of symmetry) we'll have to reevaluate the trade, but until then we continue to hold our long positions looking for at least a move to $20.21.
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