Markets Tap Tapping On Some Key Support
It’s so fun being a bear, maybe I can start publishing on zerohedge.
On Tuesday I wrote about the potential storm that was coming for the bulls.
In my market recap yesterday I pointed out the importance of this 204 level in the $SPY and after failing at yesterday’s highs this morning, we’re on our way back down to test this 204 support area once again.
This is an important area for the market to hold onto given this is the line in the sand the bulls have defended for the past couple of months. Also note there isn’t a whole lot of previous supply and support levels underneath 204.
That suggests to me we could see a sharp flush if 204 is in fact broken.
We have a jobs # out tomorrow morning which could be the catalyst the bears are waiting for to finally snap this support. Of course the other scenario is that all the nervous sellers that are dumping into this support ahead of the # could be caught flat footed on some type of positive reaction and squeeze higher tomorrow.
Whichever side your on, know that we’re at an inflection area and manage your risk accordingly.
We do hold a short position in the SPY.
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