Another gap up, this time in anticipation to the state of the union, in which for Obama does not mean anything other than preparing the grounds for the election of the next democratic candidate. His time is up. It will be three years of mostly frustration for him as most of what he will try to achieve will be slow to a halt, and if anything move forward will be with probably three times the amount of work.

The level I am watching is the 151.89 level that the $SPY have tapped 3 times, and could easily rip through. The weakness in the Japanese Yen have been been helping the commodities run higher and earning continue to come out strong.

My line in the sand continue to be 151.47, once that is broken, we will again re-test the 149.60 level that have been defended like a child’s chocolate ice cream. So until that level is broken, buy the dips is the only current strategy.

$SPY 1st support is 151.34, 2nd support 151.09 and 3rd is 150.67.

$SPY 1st target is 152.32, 2nd is 152.74, 3rd is 153.60, and 4th one just for fun is 154.46.

Trade what you see not what you think.

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