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I keep bangin' my keppe on S&P 980!

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Well I won't back down
No I won't back down
You could stand me up at the gates of hell
But I won't back down


(Tom Petty)


The Monday fray continues to sway as the bulls step up and take their cut. As I watch the clay mold and the action unfold, a few thoughts have emerged in my crowded keepe. I'm a bit jammed today, so please bear with the terse verse as I get it "out there."

First, there is a huge difference between pressing and fading when actively trading. The former can trap all kinds of critters and the dips and blips lead to whips and trips. Those that had a game plan (and attempted to use prices to their advantage) have fared much better in recent weeks regardless of their posture. Today's tape is a case in point--we know our levels and have relatively defined lines in the sand. Now we just gotta trade 'em.

This most recent lift has revisited S&P 975-980 and the tug of war has begun in earnest. I see (and respect) the banks (flattish on the day) and, evidently, everybody else does too! What's interesting, however, is that the breadth has yet to improve (despite the brief snapper) and that'll raise a flag for some equity observers. As it stands, the S&P has failed, retested the breakdown (filled the gap) and is starting to wander anew.

How you approach this roach is unique to your individual style. For my part, I continue to feel that rallies are made to be sold and Boo will have the last laugh. That's not a new spew--it's actually old hat--but as there are new Minyans daily, I thought it bears repeating. Either way, today's close is important to the near-term psychology so respect the perception and it's potential to shift.

And Joel, get off the babysitter!

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