Sunday, May 17, 2009

Prepare for the pullback

Based on Thursday's and Friday's move, I'd expect us to gap down and probably selloff quite a bit on Monday. I mentioned on twitter that I shorted SPY at 88.80 afterhours on Friday.

Cracking SPX 875 (around SPY 87.5) should take us to SPX 830 next support area. Below that is obviously SPX 800. I don't expect the market to pull back much more than that.