If we get above SPY 78.56 most likely we are headed for the 200 MA which will act as resistance. On the other hand, if SPY breaks below today's low then the likely target is an area between 72 - 74 as mentioned in my previous post.
My guess is we might have some sort of month end window dressing activities. So I will look for opportunities to the long side first.
There are no extreme readings on the RSI or the stochastics, so it is very hard to tell whether we will gap up or gap down on Monday.
I am watching the consumer staples for any clue of a genuine rally. Somehow I notice that CL, CLX did not participate in the snap back rally into the close.
From my observation Commodities, Financials and Transports has better correlation to the SPY.
Watchlist:
SPY, IWM, FAS, MOS, CL, CLX, BNI
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