Fuinhaz $SPY read for April 4 2013

As I was reading yesterday $SPY read, I came upon a phrase that defines what happened yesterday.

“Eventually the pullback is going to be imminent, and in my own opinion it will be cruel.”

I seriously was not expecting it to start yesterday. But when I was looking at my targets and support levels, I did  noticed that the gaps were wide between them. And when during the day when the market started to come down, I said to myself. This is it.

When I woke up this morning I was surprised with Japan’s rally, and I also saw the European Market excited about something that they shouldn’t. Interest rate decision.

Now as I watch the pre-market, I personally feel that this is just a big bull trap waiting to happen, and I am afraid a lot of people will get caught long when they should have been lighting up their portfolio about 3 weeks ago.

But you know what? Maybe they deserve what they are getting. The people getting caught are the same people over and over again. The ones that get greedy, and just can’t let go of a stock. That can’t take gains, and serve for us short term day traders to borrow their stocks so we can short their egos into a nice hefty profit.

Below I explain or briefly describe the news I did read this morning.

The Nikkei stock index reversed its losses to a 2% rally and the yen weakened almost 2 percent to about 95.55 per dollar after the Bank of Japan initiated an aggressive monetary policy to end years of deflation in the world’s 3rd largest economy.

The European Central Bank announced this morning that it would leave its rate at 0.75 percent.

The central bank of England said that it would not add to the current 375 billion pounds of government bonds it purchased from March 2009 to October 201. They also decided to keep the  interest rates at 0.5 percent. That is the lowest interest recorded in the history of England.

Over on our shores, Initial claims for state unemployment benefits increased 28,000 to a seasonally adjusted 385,000. That is the highest level in four months according to the Labor Department.

$SPY 1st support is 154.71 2nd support 153.30 and 3rd is 152.15 (just under the 61.8% Fibonacci Level).

$SPY 1st target is 155.55 2nd is 156.45, 3rd is 156.80, and 4th one just for fun is 157.21.

Trade what you see not what you think