06/29/11 Market Action

Today the SPY did break the 130 level. The other market indexes (QQQ and IWM) are actually stronger and the SPY so far has been following their lead. As I mentioned in an earlier post, I would try small positions if I saw the SPY break above 130. I am still very cautious. I do not have huge expectations for this market to the upside, but perhaps the SPY has a little more room to the upside (see it's declining red 50 day moving average near 132). I think defense and smaller than normal position sizes are still the way to go in this market. Holding the 130 level on the SPY will be something to watch for as an indicator that the buyers have taken control, at least in the short term.