SPY Read For The Day “Patience”

Sizable $SPY gapdown, as I warned #DTBC yesterday of. I went into Thursday with the foot still firmly planted on the gas at 65% long. I left with only 10% long in the trading accts. I am not here today, as I need to take care of something in the real world.

The Rising Spatula© has broken. Major support of 134.62 has been lost with the $SPY trading as low as 133.95. We are into a sizable gap under us which opened at 133.77 and fills at 132.68. The 200ema on the 30minute chart is down there at 132.72. Then there is another gap which opens at 132.13 and fills at 131.32. The next major support after losing 134.62 is at 131.41. That support # represents roughly a 3% correction. It wont be in a straight line, there should be bounces.

Overhead 134.62 is the nut, with the 50ema at 134.75. Doubt we retake those today, but remember this market has been an absolute beast. I suspect worst case scenario today as the gap-fill area of 132.68. If the relentless bid in this market hides for the day.

The dollar $DX_F recently found major support of 78.50 and based on it, already it is over the next major resistance area of 79.19. It is due to “dead cat” bounce here. Next stop is 79.73 then 80.06. Do not try to fight this!!! We caught a 300 point $SPX rally, now its time to take the foot off the gas and let the institutions do the lifting for us. This is not a top, I expect this dip to be bought aggressively. Patience!! I have been praying for a 3-5% dip. With a little luck, this is the start. $SPX 1338, 1307, 1274 are the focus numbers.

Good Luck,


Comments are closed.