Wednesday, March 19, 2008

03.19.08 - Retrace

Don't forget it's expiration week and even the elevated volatility will be multiplied (VIX is 28.5 +10%). Looks like yesterday was short-covering induced. Bespoke makes this argument as well with their usual concise charting skills. Nonetheless, I'd expect potential support here around the SPY $132 level with the next, perhaps stronger level at S1, $131.25.

1:45PM CST UPDATE: Uggh. If S1 fails, I'd buy for a trade at the 5-day MA, which is about $130.40. I covered my hedges too early, but glad I had them on in-spite of the early morning regret.


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