We're oversold and heading into the trend-line and 50 SMA on the SPY. We'll be buyers of this area if we can hit it tomorrow. On the other hand if we work off our oversold status in a few flat days then we will be short into support. One of the most important things about support buying is to know how oversold a stock is by the time it hits support. In practical terms: If we hit SPY 105 tomorrow we will go long. If we base here for a week and hit SPY 105 next week we will go short.
