Early morning futures were screaming higher on the back of the global rally.  The rally stayed strong throughout the session and kicked into overdrive during the final hour of trading.  Volume ended lower across the board, but remained above average.  During the final minute of trading there was something quite funky going on with SPY.  SPY moved more than 6 points in less than a minute only to push back lower.  Aside from the odd action in SPY the day finished strong without volume.  After a strong two day move this market has the ability to push back into new high territory.

Sentiment sure didn’t get spooked from the recent selling.  Bulls took a hit, but remained in control.  NAAIM exposure index dipped to 65%, but the highest bullish bet was still 200% long.  AAII bulls landed at 38.7% down 6.3 percentage points.  Bears jumped 4.5 points to 26.9%.  Even with a sharp decline bulls did not waiver too much.  Perhaps a bit more telling may be the lack of bears.  Given the pop the last two days do not expect to see Bears push higher.

Regardless of how we proceed further it is paramount you remain vigilant with your trading process.  We at Big Wave Trading will continue to execute our trading process.  If this market takes a break, pushes higher, or rolls back over we will succeed.  Not getting emotional will allow us to avoid common rookie mistakes.  The minute you think you know where the market is headed will only bring you pain.

Get out and enjoy the final weekend before Christmas.  Enjoy option expiry!