Kevin Spires, CFA, FRM
Disclosure: Bellaire Capital Management, LLC was long SPY on behalf of its clients at the time this report was written
Disclosure: Bellaire Capital Management, LLC was long SPY on behalf of its clients at the time this report was written
With the refusal of SPY to break above the July 2011 highs, it looks like the stock market may want to test the 200 day moving average again.
With the 200 day moving average now up to 130, that is probably a good test of support for the market at this time. I don't think that a sustained rally is in the cards so I would not be surprised if 130 does not hold. The 127.5/128.0 level may be a better place to enter a new long, but don't be surprised if the market tests lower levels. Tight stops on new longs is probably a good idea at this time until the uncertainty about the U.S.'s fiscal policy is resolved.
Disclaimer:
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.
With the 200 day moving average now up to 130, that is probably a good test of support for the market at this time. I don't think that a sustained rally is in the cards so I would not be surprised if 130 does not hold. The 127.5/128.0 level may be a better place to enter a new long, but don't be surprised if the market tests lower levels. Tight stops on new longs is probably a good idea at this time until the uncertainty about the U.S.'s fiscal policy is resolved.
Disclaimer:
This information is neither an offer to sell nor a solicitation to buy securities. Forecasts, estimates and opinions stated are my own and the data presented is for educational purposes only. Investments involve risk unless otherwise stated. Past performance is not a guarantee of future results. Be sure to first consult with a qualified tax and/or financial adviser before implementing any strategy discussed.
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