Morning folks. Market is showing some slight weakness this morning with the spy down .6% premarket as traders digest the huge move thats been made the past week and await the upcoming earnings season along with a vote in slovakia on the eurofund. Amazing day in the markets yesterday as we started off with a huge gap up in the s&p of 20 handles and then added 10 more within the hour. This made it very tricky for daytraders as the market basically peaked within in an hour and went sideways most of the day till a late day dip got bought up with fury taking us to new highs in the last few minutes of the day. Unless you were heavily long going into the weekend it was not easy to get into the market yesterday. The ball is def in the bulls court now as we are above both 20 and 50 day moving averages. Lot of people have missed out on this last rally if we get some weakness towards the 50dma and it gets bought we could see further upside to the top of the range of the past 2 months in the 1230 area. I have 1st level of resistance in the spx 1200 level. 1st level of support at the 50dma at 1174. We are shorterm overbought and could dip sometime today or tomorrow but often if the market is making a big squeeze we can stay overbought zone for extended periods of time often a week. Lot of smallcaps are still lagging. if mkt stays flat today this will be good day for them to fire off as they tend to trail a big rally in the indices and then start triggering on a flat/consolidation day.
