Monday, May 19, 2008
The title says it all; we finally got our break-out with some moderate buying pressure as the SPY pierced the 200-day. At this point I'm positioning for a pullback.
What I'd "like" to see is consolidation back down to the twenty day, then coming back above the 200-day to form strong technical support over the months ahead. That's not trading advice, just one possible scenario assuming economics can keep up with the come back rally.
Back to today, the SPY is in a holding pattern just above R2. Cumulative Tick is flat, but I don't really have a strong conviction of where we'll be by day's end. If we do see a second leg up, I'll put more on short at the close -- I don't want to fight the intra-day trend beyond getting fully neutral here.
NEVER INVESTMENT ADVICE