The last time we had a 10ish% pullback in the SPY was during the weeks of 6/19/09 and 7/10/09.Back in the middle of July it took less than two weeks to recoup the 10%ish pull back; we will see what happens this time.


You can make the argument that the SPY broke the down trend line on Thursday and Friday and that we are in the clear to move higher. I am not going to say we didn’t, I just would have liked to see more enthusiasm in the market when we did. However, we were looking down the barrel of a three day weekend and Greece so I will wait for tomorrow and see what happens.

With that said, under the hood some of the etfs I track that came in and tested the 150 day MA during this sell off have started to pull away from the 150 day and look like they want to move higher.

IWM (small caps), IYR (real estate), JJC (copper), KOL(coal), MDY(mid caps), QQQQ (NASDAQ 100), RSP (S&P Equal weight), RTH (retail), SLX(Steel), XLI (Industrials), XLP (Consumer Staples) and XME(Metals & Mining) all have some nice day light between them and the 150 day now.

Friday was a quiet and whippy day ahead of a three day weekend so I don’t really want to put too much into it. I continue to watch the 150 day MA on the SPY (106.36) to see if we bounce when we get close and I will feel a whole lot better about being long when the low of the day in the SPY is 108 and we close up around the 20 day MA (109.35).