Coming into this week we were discussing the chance of a slow grind higher into the end of the year. See the Week Ahead post here – http://www.bencbanks.com/yellen-brings-christmas-in-november-week-ahead/ This thesis is still very much on the table, take a look at the chart from January and then the chart from this past couple weeks, very similar in nature. So far this morning, since the opening bell we had a run up 180.42 and are now cooling off a little, potentially starting a small pullback or consolidation. Perhaps some very fast traders will try to short versus the morning highs, but unless you are a very fast, risky, trader I do not think that this will be very lucrative. $SPY now being on day 3 outside of the bollinger band, making it difficult to add or initiate longs here for anything more than a tactical day trade.
Taking day trades is where I am, I do not see adding to swings here as being very wise. A down day to a flat day would allow the charts to set up for a more swing conducive environment. While outside the upper bollinger bands, adding to swings will be MORE difficult (not impossible) therefore, a day or two to get back inside of them will re set the R:R back in favor of the bulls adding to longs.
Have a good rest of the morning and day. Below if a quick chart of $SPY, showing day 3 of being outside the upper band. As always, if you have any questions or comments feel free to shoot me a tweet or email (see Contact Page).