$SPY pretty much flat as we received news last evening about France being downgraded from AAA to AA. Doesn’t impress me at all but I think this is the media trying to take focus from Spain, that is in real bad shape. Actually I did read yesterday that Spain was offering permanent visa for foreigners that would buy a property worth at least 160 thousand Euros. The idea is still being studied by the country’s government, but a source said that the idea is very close to being approved. So we’ll see.

On our side, I keep saying that things are getting better, but people just don’t want to listen. This morning the commerce department said on that housing starts increased 3.6 percent to a seasonally adjusted annual rate of 894,000 units that is the highest since July 2008. Because of superstorm Sandy, september’s starts were revised down to show a 863,000-unit pace instead of the previously reported 872,000 units.

Now let’s go to the numbers,

$SPY 1st support is 138.77, 2nd support 137.56, and 3rd is 136.83.

$SPY 1st target is 139.25, 2nd is 139.64 3rd is 140.16, and 4th one just for fun is 140.64.

Trade what you see not what you think.

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