Market Update

8:25 America/Los_Angeles 24 Jun 2010 1 Comment

This has been a nightmare week. The decision to go long last week has turned up sour so far and makes me think of the scene from Anchorman when he jumps into the bear cage and says ” I immediately regret this decision”. Things looked hopeful Monday morning with the rally, but the rejection from the 50 day moving average was not pretty. In past posts we explained this possibility and was the main reason for the reluctance to go long last week.

Drawing a line in the sand there is a support level at $106.85 on SPY, which is about 1% away from where we currently stand. We will have to see if the market regroups and rallies back up to test the 50 day moving average again.