Hi Shoppers,

If you remember, on June 9th, I made a bold prediction and said the S&P 500 was going to $4500.

SPX was trading $4294.

It closed yesterday at $4425.

I admit I didn’t think the rally would be this quick.

And looking at the chart, it looks even more bullish, at the moment.

Check it out:

There is an index that has been lagging, but I think it is gearing up for the next leg higher.

This is the Russell 2000 Index (Ticker: RUT).

I’m thinking it’s about ready to participate in this rally as it has lagged quite a bit.

A cheap way to get into it is to use the Direxion Small Cap Bull 3x (Ticker: TNA).

Here’s the chart:

It has been creating a bull flag, taking that pause to gear up for the next leg higher.

Looking at the options, next week’s at the money calls look pretty good:

TNA looks to me like it can trade up to the $38-$40 level.

I would use a close below the 200 day moving average at $34.42 as my stop loss.

Trade Review

Advanced Micro Devices (Ticker: AMD) may not have given a clear confirmation the following day, but it surely traded lower, down $4.00 at one point yesterday.

Pepsi (Ticker: PEP) – I called for $185-$187 and it traded over $186 yesterday.

Thanks for Reading … See You Next Tuesday,

Licia Leslie