SPY Chart 5/18 Selling Selling All The Way

Wasn't Facebook's IPO today, because I didn't notice.  The market was on a roll.  It capped the worst week in 2012 with the SPY off 3.5% for the week. It also seems that Europe is planning for a Greece exit.  Now that is not gospel. But Europe is putting together contingency plans for if they do.  If you hear a report that someone is putting at contingency plan together it generally means there isn't one already and its akin to being in a building on fire and you are on the top floor saying we need to plan our escape rout.

So it seems that is the path we are on may eventually lead to Greek default.  The other concerns that are out there is where is economic growth going to come from.  Right now we are slow, still growing, but slow and with all the other events happening it is having a dampening affect on the markets. 



So what's the play?  I assume there is a rally coming soon, but I wouldn't extinguish the thought that the markets (SPY) could drop.  The SPY if it drops through support at $130 could see us drop another $5 into $125.

I am still bearish on the SPY.  We are pretty oversold but I am on the prowl for a rally and then look to get into some things when a rally sputters out.

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Disclaimer: This article is intended to be informative and should not be construed as personalized advice as it does not take into account your specific situation or objectives