Another neutral day so far in pre-market. As I write this the $SPY is showing the 151.03, still a huge difference from yesterday’s low, but I feel very confident that it won’t take long for us to get used to those levels again.

The $NYMO (McClellan Oscillator still showing a lot of downside momentum, and like I said on previous post that this is healthy for us to make new highs.

I have two other great traders @traderstewie, and @szaman who identified a diamond shape pattern on the $SPY that suggests that a healthy pullback is now in the making.

On top of that I have noticed that break out stocks are becoming harder and harder to work. When they do, usually the momo traders are taking gains very fast. I believe that in a few days I will not be surprised to see many of them halt their activities and focus purely on cash, or a few shorts.

Again I like to remind that anything surprisign can happen, and that one should focus currently on the $SPY breaking that Fibonacci level at 151.47. Until then, this market is going down.

$SPY 1st support is 150.34, 2nd support 149.80 and 3rd is 149.49.

$SPY 1st target is 151.32, 2nd is 151.83, 3rd is 152.32, and 4th one just for fun is 152.74.

Trade what you see not what you think.

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