A quiet and choppy market down day; considering we had such a strong close I think the bulls were hoping for more. It is kind of a standoff in the market right now. The SPY is stuck between the January 29th close (107.39) the 150 day MA 105.84 and Fridays low 104.58. This will resolve itself at some point but until then I expect more chop. Until we close above 109 on the SPY I am probably going to be short biased.


If today’s action is what passes for a continuation rally in the market then we are headed lower and the next stop for the SPY is the 200 day MA down around 102.

The DJIA closed below 10,000 today for the first time since November; it’s good for headlines and little else. A much bigger deal would be if it closed below Fridays low and the 150 day MA roughly 9800.

Not much action in the TLT today but I am going to continue to monitor the trend lines I wrote about yesterday and see if they are significant. It looks like 92.50 is the breakout level on TLT and I will be watching that closely.

If you are actively trading be patient and don’t get chopped up these levels will resolve themselves soon enough.