Fuinhaz $SPY read for July 9, 2012

$SPY opening flat after last Friday’s sell off. I personally don’t think this sell-off is over, but may get some relief today. The idea today is to watch the pivot points (resistance and support levels). One other detail to keep in mind, is the fact that since we are in an overbought kind of market, the possibility of a multiple day pull-back is still very much alive, and that can last up to July 20th, that is when we have another European Meeting. So please be aware that we will have a couple of days of pure chopness, and a range that will most likely confuse traders. Just focus on that meeting, and one should be fine.

The market usually plays this way for 2 reason. One which is the most important which is to wait for a significant catalyst to move, in this case the European Meeting, and the second is to confuse traders, and the so called talking heads who tend to ignore the first factor.

Be ahead of the game, and you will see that you will focus on the pivot points to help you scalp names, and for you to calmly wait until the outcome of that meeting.

$SPY 1st support is 135 (.10 cents from 20 MA @ 134.90), 2nd support 134.74, and 3rd is 133.98 (A couple of cents from the 50MA).

$SPY 1st target is 135.70, 2nd is 136.69, and 3rd is 137.06, and 4th one just for fun is 137.64.

Trade what you see not what you think.