The market’s been melting up on light volume and I’m not chasing it — it’s the most hated rally of my career, after all…
I’d much rather wait for a cleaner setup — and that means watching for a gap fill across the major indexes.
We’ve got open gaps from Friday into Monday on S&P 500 (SPY), the Nasdaq 100 (QQQ) and the Dow (DIA). After that massive pop, price hasn’t pulled back to retest anything. It just keeps climbing — and I hate that kind of action.
If we’re going to make new highs, I’d prefer to see at least some kind of healthy pause.
The Levels I’m Watching Closely
I’m looking for the market to come back and fill some of these inefficiencies — areas where price exploded and never looked back. Specifically, I’d love to see a pullback to the Friday-to-Monday gap higher across all three indexes.
That would give the bulls a much stronger base to launch from.
It’s not just about cleaner technicals either. We’re seeing risk-off signals in currency flows — Swiss franc and yen strength — even while stocks are floating higher.
Meanwhile, sentiment just broke a historic 11-week bearish streak and the VIX is smashed down into the teens. That’s a dangerous mix of complacency and chasing.
Why I’m Not Forcing Trades Up Here
I’m not just jumping in and buying shares at the highs. I’d rather see SPY, QQQ and DIA come back down into the gap levels and give me a more attractive entry. If we get that dip, I’ll likely use ratio spreads or 1-1-1 combinations to participate — setups that let me define risk while still taking advantage of the rebound.
Until then, I’m sitting tight and letting my existing positions run. Yes, I’ve got exposure. Yes, things are working. But this kind of nonstop grind higher — with no real backfill — is exactly what makes traders feel stuck. The longer it goes without a reset, the more painful that inevitable pullback becomes.
So buyer beware…
I’d rather see that pullback now — while there’s still structure beneath us — than later, when everyone’s forced to panic.
I’ll see you in the markets.
Chris Pulver
Chris Pulver Trading
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