RE: Load up for a tradeWe hit the 200 day MA for $rifin yesterday and held through the close, $SPX didn't quite make it yesterday. So what should happen today is that the S&P is catching up to the banks runup yesterday. Remember banks leading the way both directions.
The key though is that I do not expect the 200 days to hold here. I don't believe they can technically. So this is why I'm looking for FAZ to make a nice run right now. However, after that then the next time the 200 day MAs are hit and penetrated they will hold for a longer period of time. I looks like they could hold for a few weeks.
I will be watching closely as we are at a turning point with the next 2-3 days critical. Either way I expect markets to peak today and then drop off. It is what happens at that point that is crucial. By early next week we will know what to expect for the next couple weeks. Right now I am leaning towards a mkt rally, but if the 200 days cannot be recaptured next week then time to get heavily short.
SC