Tuesday, June 29, 2010

06.29.10 - "Shanghai Surprise"

Yesterday's stand-off was settled today with a sizable opening gap and run to the downside, breaking potential trend line support near SPY $105. Whereas yesterday's volume was the lightest of the month, we are now near highs -- true distribution. Price action is catching its breath at the mid-day, but internals are very very negative and I don't feel compelled to add to my small long positions just yet.

It's difficult to draw next support from a technical standpoint as so much time has passed since prior key levels and the fear trade is definitively on. However, I'll draw a fat mark somewhere between SPY $100-103 as a next target with a bias to $101 [edit: whoops, meant $102].

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