This was an important resistance area for the S&P 500 (1100). The VIX also closed below its 200 day MA which was also a bullish sign. The next resistance levels are 1115 (the 200 day MA) and 1129 (the previous high). If the market breaks above 1129, there would likely be a run up to 1160. There have been three strong days up for the market. I will look at the price action on Tuesday to see what my next move will be. If we pull back a bit, I might look to buy some calls. If we move higher, I'll probably wait to see how the S&P 500 reacts to its 200 day MA. If we sell off hard and get back below the 50 day MA, I'll be buying puts. This rally still doesn't make sense to me, but you can't fight the tape. A sell off would have to at least start to happen tomorrow (or possibly Wednesday) for me to turn bearish again.
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