Thursday, May 6, 2010

05.06.10 - Failure to Bounce at 38% Retrace

The S&P 500 hit $115 and a quarter right above the January highs, but we've failed to get convincing support so far even though all eyes are glued there. Next support is all the way down at $113-plus (50% retrace) and internals are quite awful yet again. I want to put more capital to work, but feel forced to keep it small for now even as I peel off hedges. There is still the chance that we see some shorts squaring up into the jobs report, but there are so many cross-currents right now, it's fast break mode for the rest of the week.

UPDATE: Twitter is choked. Note -- there is my $SPY $113 handle -- didn't think we'd actually hit it today! #MKT

No comments: