Friday, May 23, 2008

05.23.08 - SPY Holding at Important $138 Level

"Famous last words..." I posted yesterday... should have trusted my spidy sense. The early damage is leveling off at the important SPY $138 level, though we did probe down towards the rising 50-day moving average.

With oil pulling back, maybe we will reprobe that low then see a small recovery. The thing is, with volume so light and buyers on strike ahead of the long weekend, it's anyone's guess. Worst case I'd continue to look to that 50-day around $137 to contain any further downside; we are already short-term oversold.

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