Leaning Long Soon

Bloomberg reports that "Spain’s credit rating may be cut from Aa1 by Moody’s Investors Service on concern about rising borrowing costs, potential losses in the banking system and deficits in the country’s regions." Make no mistake: Spain is the next bogey. The question is: when will it really matter. S&P futures were lower overnight to 1229.75, but overall the reaction from the highs seems rather muted so far. I'll be looking to initiate a long call position in the 29s but see 1225 and 1220 as potential spots as well. My gut is telling me that we could still see a bit more weakness or sideways movement before another end-of-year thrust higher which should likely be sold in early January.