Fuinhaz $SPY afternoon update June 1st, 2012

That is why I set the bar so low today in regards to the support in the $SPY. I wanted to pass the message that this is just the beginning of the second leg and that is why 128.02 is such a crucial level. !28.02 is also 200ma, and I know that a lot of people are waiting for that to be the spot where we will bounce.

I think we will probably bounce for a couple of days there, but it will be a dead cat bounce, and we slide lower. Again I want my readers to understand that there is nothing fixed in Europe. They keep on talking and talking, but really don’t say anything. But I am not surprised because this is how socialist do business.

And the population is so used to living like this that by the time they figure out how deep is the hole, it will be too late, and that is when things will start to hurt. remember the market usually reacts 6 to 9 months before the average mums and pops know what is going on.

For now, I think that the $SPY will close under 128. That should keep people thinking during the weekend.

May you all have a good weekend.