Monday, January 5, 2009

Watching the SPY Tomorrow

I'll be watching a few things in the SPY tomorrow. First, the Stochastic crossed below 80 on the hourly timeframe today, so i'll be interested to see if we cross back below the breakout level or if we stay above it. Looking at the 5 minute bars, we made an intra day low of $91.89. I'll be looking to see if the SPY can take that level out if we trade below the breakout level of $92.20. Next is volume. If we make that move down on any kind of volume, i'll be looking to enter a short position. Overall we saw a lot of indecision in the market today so i'm going into tomorrow very cautious.

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