Bullish start to Jan 2017

Right on time and as expected, today was a bullish day, although the move occurred mostly overnight due to some good growth numbers out of Italy and China. Oil fell and that put pressure on the day's session until a rally in the last hour.



The Market Forecast chart (middle chart on the graph above marked MFC) shows that a bullish intermediate cluster was formed last week. This means that further downside is limited this week, and we will likely see the markets retest the highs.

I notice in the Market Sentiment chart on the bottom of the graphs above that the line is flattening and again nearing the 80 level. This is again a sign that real upside potential from here is limited.

I bought back the SPX 2245/2235 put spread expiring on Jan6 for $2.70 - a loss of $1.60 on the trade. As the market is moving higher I will sell put spreads this week to gain from the bullishness.