Friday, July 15, 2011

Observation

SPY in no mans land here with bias to the downside, after all the pushes up in the past several days was met with selling on above average volume. I will be watching 131.50 closely today as any break below this level could result in a down day.

The financials continue to take a beating in this market, and until the sector regains some footing in this market, I expect the decline to continue. Tech is also weak which isn't a good sign for the market with the SMH about to breakdown below 32.50.

Gold however, has returned to its prior strength on global concerns which could make gold stock attractive to the upside.Should the SPY open inside yesterday and above yesterday close I would look for weakness and should it take out 131.50 I would be getting more agressive selling. To the upside I wan to see 133.00 taken out before getting long.

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