Traders have a variety of tools at their disposal for gauging market strength. Some look to momentum and breadth indicators, while others focus on sector performance.

One of the simplest approaches is to assess the nature of retracements within the uptrend. A weaker market boasts deep retracements lasting multiple days, often with high volume. A resilient market shows shallow retracements with a short shelf life.

Monday morning’s bout of weakness in the S&P 500 Index was one such example of a pullback characteristic of a strong market. It lasted only one hour, failed to break the lows of the Friday’s trading session and was completely reversed by day’s end. As long as an aggressive bid like this lurks beneath the surface, the bulls will have the upper hand.

Click to EnlargeIn light of the bullish tape, let’s highlight a bullish trade consideration in the social space. LinkedIn (NYSE:LNKD) is forming a light volume retracement after surging to a new three-month high on the heels of LinkedIn’s recent earnings announcement. To those looking for higher prices in LNKD, the current pullback should be viewed as a buying opportunity.

One high-probability strategy worth consideration is selling the September 90-85 bull put spread for 60 cents or better. If LNKD remains above $90 by expiration, the spread pays out $60 — a return of 13.6%. The maximum risk comes out to $440 and will be incurred if LNKD sits below $85 at expiration.

At the time of this writing, Tyler Craig had no positions on LNKD.