I didn’t trade today because of the snow but it looks like it was a pretty quiet market. The SPY effectively traded in a $1.25 range with solars, steel and junk bonds the weak sectors. While the brokers, banks and agribusiness sectors lead.


The SPY bounced off the 150 day MA (106.10) this morning and is pinned between it and a down trend line stretching back to January 19th. This should resolve its self in the next few days but in the mean time keep an eye on these two levels. My belief is that we are going to need some good strength and volume to get through that down trend. If the market fails at the line we may just simply ride the trend line down until we get to the 200 day MA (102.38).

There was a poorly received bond auction today and the TLT sold hard in reaction. It closed at 90.40 and has pulled away from its trend line but is now closing in on the 89 level. I will be monitoring it to see if it is still significant.

The SPY trend line/MA issue will resolve itself soon enough so be patient until it does because we will probably have choppy quiet trading until then unless Iran decides to do something silly tomorrow.