Thursday, January 15, 2009

Where are we headed?

We retraced almost exactly 62% from the high back to the low. SPY formed a bottoming candle on the daily (green). I expect a 62% retrace back to the high, which would put SPY at about 89.5 area. I will more than likely start scaling out of my feb calls into mar and jun puts starting around SPY 88 area.