Don’t Expect Much After Monday Rally

Futures have faded all morning after gaining overnight, and how point to a lower open on Wall St. Dovish comments from Fed Chairman Ben Bernanke sparked a rally to multi-year highs yesterday, but it appears there will be little in the way of follow-through. However, the move could have been overdone as there was no suggestion of a QE3. I would not expect much today after such a big move.

Typically you get a up or down within 5-7 handles the day after. Most stocks across the board have had tremendous moves with commodities finally joining the rally the past few days. From a trader’s perspective, there has been a lot to like if you ride trends and rotate to the best patterns sector to sector.

The next cluster of resistance in the S&P is 1422-1425, then major resistance at 1440. S&P support is 1405-1408 and then 1396-1398.

As the week continues, make sure not to get overly giddy or over extended as it does get a bit trickier in the last few days as well as the first few of the next quarter.

Disclosure: Scott Redler is long LNKD, AAPL, BAC, MS, LVS, CZR, F, SOHU, DNKN, TBT, MSFT, INTC. Short SPY, QQQ.

About Scott Redler 367 Articles

Scott Redler is the Chief Strategic Officer of T3 Live. He develops all trading strategies for the service and acts as the face of T3 Live. Mr. Redler focuses on thorough preparation and discipline as a trader.

Mr. Redler has been trading equities for more than 10 years and has more recently received widespread recognition from the financial community for his insightful, pragmatic approach. He began his career as a broker and venture capitalist where he was able to facilitate relationships that led him into trading. Beginning his trading career at Broadway Trading in 1999, Mr. Redler moved on with Marc Sperling to Sperling Enterprises, LLC after establishing himself as one of the best young traders in the firm. As a manager at Sperling Enterprises, continued to trade actively while working closely with all traders in the firm to dramatically increase performance.

Mr. Redler has participated in more than 30 triathlons and one IronMan, exhibiting a work ethic that also defines his trading. His vast knowledge and meticulous attention to detail has led to regular appearances on CNBC, Fox Business, Bloomberg, and he is a regular contributor to Minyanville and Forbes’ Intelligent Investing blog. He has been quoted in the Wall Street Journal and Investor's Business Daily, among other publications.

Scott received a B.B.A. in Marketing/Finance from the State University of New York at Albany, graduating Magna Cum Laude from Albany's School of Business.

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