I had a great day yesterday. Some solid gains, and I only traded 3 stocks. I woke up this morning with the $SPY trying to boiunce off trying to make 1 almost 1 point from yesterday's close. And all that without a Jobs Report which is due at 8:30am. I do like when the $SPY try to anticipate a move, suck as many retail investors in, only to continue what it does best which is to illude people.
I do think a bounce is in place, but not until we reach 159.40 - 159.80 range, and not until the $NYMO (McClellan Oscilator) touches base with it's oversold territory as I illustrate below.
The Erupean Union just came out this morning and left their interest rate unchanged at .50 basis point. I am not surprised to see them doing that since things are really bad over there. I came back from a 3 week trip to Belgium and France, and was horrified by what I saw. Stores are empty, many of them closing, on the news we hear of strikes left and right. I actually saw the best strike in years. The people who presents the nightly news went on strike for 1 day. Now how do you make a news program with no host? Well very simple, they showed the shots from the news, but there was no explanation. How brilliant is that?
One other significant change I saw from my last trip 2 years ago, is the fact that many solid city center business (butcher, florist, restaurants, bakeries) were all closed and put up for sale. It might not be too meanful for us who live here in the US, but in Europe it means that these stablishments that were solid money makers for the owners, who in some some cases were there for 40+ years, are now closing their doors. Everything is being eaten up by the crisis, and from what i can tell they are far from getting back on track.
Even Disneyland Paris looked like a ghost town. For the first time I went to Disney, and I did not felt the magic. I spent 2 days there with my kids, and saw a lot of restaurants and rides closed. I doubt that they can carry that park too much longer. Again it was very sad to see.
Now I got so depressed, that I rather close this sad $SPY read with the numbers.
$SPY 1st support is 161.75, 2nd support 159.80 and 3rd is 159.40.
$SPY 1st target is 163.35 and 2nd is 164.43, 3rd is 165.52, and 4th just for fun is 166.87.
Trade what you see, not what you think