Disclosure: Bellaire Capital Management, LLC was long SPY on behalf of its clients at the time this report was written
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.
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