I hope everyone enjoyed their long weekend as it's now time to get back to trading... hopefully that is! This week we should see some action I believe as the mutual funds jockey their positions around during the last two days of the month of May. And considering how far up the market has run I'd think they would take some profit and wait for lower prices to get back in for the next big leg up. How low is another story as the bulls have lots of support below. First support would be the 2395-2400 area, then the 2380 level. I'd be surprised if we see that today, as it's the first day back from a long weekend and usually those days are light volume days, which favors the bulls of course.
Chartwise though the 6 hour and this 60 minute chart could support a nice pullback as they are both looking bearish too me. Of course we know from past experience that the bulls can turn any bearish chart back up whenever they want it seems, so I'm not getting too excited about the MACD crossing below zero as I've seen it turn back up from there too many times in the past. I'm just going to wait and watch today to see what happens. I'm already positioned short but not so confident on the pullback just yet. There was a FP on the SPY from Friday showing 239.87 around 5:30 pm, which could be the pullback area. Certainly the gap on it needs filled and that would do it... and then some. However, there's good support in that area so if it's hit I'm sure I'd be looking to exit my shorts. On the upside the bulls are pretty much unlimited I guess, so what's the point on projecting targets there? LOL. Anyway, that's all for now... I'm looking for a pullback to the "Fake Print" on the SPY and hope to see it today.