There is some air of optimism today. Most of the major indexes have broken a 4 day losing streak. But I am not convinced yet, I believe we may have another push down this week. Thursdays and Fridays typically have not been good for the markets the last couple of weeks because of the jobs reports, and Europe is still mired with a number of crisis' which if a leak of bad news the market can sell off. I just don't see enough bullish sentiment to push above at least $132.50 on the SPY. There has to be enough of a reason to push above those short term technical levels. Now there is no doubt that the price action pushed above the close from yesterday, but there is still the $130 level that we will test tomorrow if that fractures above $130 there is one more resistance that it would need to break and that is $132.50. It looks like the SPY is testing the 200 day moving average and forming some level of support, but its a wait and see this week.
On the 60 minute chart we have still not broken the trend line from last week and resistance has been pretty fickle at the 50 period MA. It will be interesting to watch the price at $130 and see how that behaves.
I continue to hold onto my bearish positions due to we have not broken above $130 if that occurs I will start to look to get neutral and see what comes out in the coming weeks.
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