Last week was not a very memorable or interesting one.  The SPYs closed 1 point, not 1 %, but 1 point higher than where they had closed on Tuesday as we completed the newsletter for last week.  It was the most listless week of the in over 2 months.

What can we say?  Last week concluded that we had a “coin flip” on our hands:

Flip a Coin – What Should Happen vs. What Could Happen…

We knew the market was overbought but we also knew that it could jam up to the all-time highs given the proper nudge and proper news dissemination.  Ultimately, we determined that a pullback was in order but we also noted we’d be surprised if the Gang simply gave up and didn’t try to breach the SPYs $281.00 level at least one more time.  After all, they were only 1% away.  We leaned that way with no official bull ideas and several official bear ideas.  It was the first time we could find any bears in over a month.  We’re happy with our attempt to go that way as the SPYS were on the ropes nearly every day thereafter last week.  But now it’s time to be “Neutral Neutral” until further notice as we see it.  The 10 SMA served as the “ropes” for the SPYs and they simply wouldn’t crack and close below the 10.  The 10 SMA was the first lifeline the bulls could latch onto and they did every time.  Despite a near-vertical 2 month upside run, bulls are still levitating this market breathlessly.  Do they know something?  They’re sure acting as if they do.  We simply can’t rule out that some news, maybe the tattered “China Trade Deal” card, will be played yet again and that could be the catalyst for the blastoff towards the all-time highs.  One would think that much of that has been priced-in over the past 2 months but Wall St. never lets a good “jam and sell on news” go to waste after having re-stocked their inventories by buying on rumor.  And, let’s not overlook that last week could easily serve as a technical pause that refreshes.

This has been Wayne Razzi coming to you from the “Switzerland” bunker.