SPY (08 Dec 2008)

SPY is still in the grey area and I shall remain neutral on the major indexes. From past week's action, it appears that the sell down on commodities has been offset by buying in other sectors hence....making SPY appear to trade sideways.

I can see money flowing out of some defensive consumer stocks like PG, JNJ into other undervalued quality names in other sectors. Even some consumer discretionary stocks like DECK, TIF, RL has gained despite their earlier weakness.

Here is the SPY chart for Monday, if 83.61 holds we will most like trade sideways or head higher if SPY can breach 89.71.