We haven't seen this type of movement in a while. The bulls showed us who was still in control yesterday, but today, the bears sold us right back down to the base of the current trading range ($113-$115). Until we confirm a break below $113, I am going to continue playing the range.
In the afternoon we rallied to just about the 50% retracement on the SPY. I will be looking to short the market again somewhere between $114 and $114.20... If we do head back down off this level tomorrow, I will be keeping an eye out for SPY to break down below $113 with a target of around $112.35. Otherwise, if SPY trades above $114.20 - $114.30, I will look to go long...
Wednesday, January 20, 2010
Wednesday Morning
As you saw yesterday, the bulls did not have any trouble reiterating the fact that they are still in control as the markets reached the highs that we saw last week.
This morning the markets are gapping down lower. On the SPY, it looks like we are going to open right around the $114.20 support/resistance level. I would play this the same as yesterday... Buy into any advances above $114.20-$114.30... Sell into any declines below $114-$114.20.
This morning the markets are gapping down lower. On the SPY, it looks like we are going to open right around the $114.20 support/resistance level. I would play this the same as yesterday... Buy into any advances above $114.20-$114.30... Sell into any declines below $114-$114.20.
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