The collision of global markets and social mood

Wednesday, February 8, 2012

It's Wednesday, Another New High

I scooped up some SPY 134 puts yesterday afternoon, got out of half at the close, and just dumped the rest at the open. I was expecting a large down move this morning, and it looks like the market doesn't think so. Not yet anyway.

My feeling is that the S&P is now the last major index that remains below its May highs. I think it may either want to confirm the others, or fail and send a huge message of non-confirmation to the markets which would be very bearish.

The wave pattern looks mature. I'm not yet seeing good spots to enter for long plays, though that could change quickly. Instead, I'm watching for a Fib target at 1351.49. If the market blows through there, 1356.48 and 1370.58 (May highs) are the next targets.

1300 and 1292.66 loom below.

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