Friday, January 9, 2009

01.09.09 - A Fall; A Floor

Lost track of the clock, though it's not like anything is happening. In the pre-market just before the jobs announcement, the S&P 500 moved up to its declining five-day moving average, then summarily dropped all the way down to the SPY $89 level. As expected, this level is initially providing strong support at the confluence of the flattened 20 & 50 day moving averages. So far this is holding, though repeated rebuffs by the falling VWAP don't bode well. That said, tick is flattening and the VIX appears stable; lower, in-fact, than yesterday's close. You know I don't like narrow ranges -- I'd suggest going into the final hours we could break either way with a downside bias.

Never Investment Advice

No comments: