We’re at the close here and bulls held the 20SMA/50% retracement of recent rally/ $ES_F AH low.
So what if doesn’t hold? Next support comes in at 1295 on the $ES_F which is the top of the previous range (corresponds to around 129.8-130 on the $SPY) which also is around 61.8% retracement of the rally.
As to our position, we’re all cash. If market rips then we’ll pay up for it and trade whatever sets/triggers. However, we won’t be looking dark until we lose that 2009 trend-line — so far all we’ve had are mean reversions up and down as rips have been faded and dips still have been bought. Until that changes we’ll be trading the status quo.
Big beat by the $GOOG machine in AH — ball is in bulls’ court now as they need to hold this technical level and rally from it using the earnings beat as a catalyst. A push from this 20SMA/50% retracement area would be a great start which in turn could bring in the “fear of missing” mentality.
