Low and behold as quickly as SPY, DIA and QQQ got to their resistance levels they failed. On the dime. All in all a good day but the big boys like Fidelity and T.Rowe Price are no longer in charge.
So if you were disappointed by the close it is because you did not know that resistance on SPY for today was 193. I am going to bang into your head if you are going to trade either as a long term investor, Warren Buffet, or a short term trader, Stevie Cohen, then you better understand how to buy and sell in relationship to the machines.
Support on SPY today was 186.52 which is a really wide range. This was due to yesterday’s action. A wide ranging prior day sets up for a wide range the next day. Expect a wide range for tomorrow. Currently, ES H6 is off by 4 points which is nothing and tomorrow brings a ton of economic data with retail sales, PPI, industrial production and Michigan Sentiment. Premarket could be a mover.
If there is no follow through tomorrow, then the bulls will be fooled again. Will they?
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