After our now almost traditional mark up in the indexes either in premarket or the first 30 minutes, the markets have reversed and given back some gains. This is quite atypical of the action we have seen much of the last year... more or less any day you have light volume and a mark up morning either (a) the index drifts sideways all day in the square root formation or (b) it drifts up on vapor all day. Hence this action is interesting in that it's different.
At this point like a magnet the twin exponential moving averages of the 20 and 50 day bracket the S&P 500, with that gap waiting down at 1078 if and when. A clean break of yesterday's low would set up some for a potential of a nice swoosh down especially if it happened today since some bulls surely were sucked in first thing in the AM...
Bulls want this level to hold, bears attack below 1090 with the easy trade to 1078. In a normal era this type of action today would call for further downside as the way to lean. In the mark up morning market era of the past year, we just never know as historical precedence seems to matter little. Still going with my old school lessons and hedging some more for downside.
Recall the next few days are all about our drug dependence on Ben Bernanke.