For some time I’ve been watching the S&P 500 for a turning point in the current up move.  One of the key reference areas I see as strong resistance is 109.68 in the SPY (the S&P 500 ETF)…this is because there was an unfilled gap left there from October 2008.  Yesterday that gap was filled, I went short, and the market quickly moved off that area.  Today we are down over 10 points in the futures contract.

I always say that the market moves in probabilities, not absolutes, so I see a greater probability of the market making a sustained move down than continuing up.  However, if we do break above yesterday’s high, I’ll take the trade off and either reverse my position or wait for another good short opportunity.

Good trading,
Darryl

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