Regular readers know of the "Yearly Pivotal Promise". Like most promises, it is not kept all of the time, but generally the odds are very good. For example, on the INDU since 1950, there have only been 4 years that have NOT made it to trade a YS1 or YR1. (If price reaches within 1%, I consider that close enough.)

So this is the basic point - most asset classes will reach a YS1 or YR1 during the year. It is a very good bet to make. And the YP is the dividing line on what we are expecting to see. Obviously, an asset cannot reach a YS1 without below below the YP first. So very simply - above the YP means shooting for YR1; below the YP means shooting for YS1, until the YP pivot status changes.

The Yearly Pivotal Promise has already been fulfilled on QQQ and INDA, and "close enough" on SPY. Today XIV and EEM joined the club.

Things look very bullish for stock indexes here, but at the same time, SPY and XIV testing major resistance. My current expectation is for a range, but in this kind of momentum, we cannot rule out higher. Currently portfolio has 10 longs plus 1 short hedge for 90% net. IWM has not done well in 2017 but is lifting from weekly chart moving average support and recently reclaimed status of above all pivots. So, adding 1 IWM for 11 longs, valid with daily close above the MarP.

SPY, IWM, XIV and EEM below.