Intraday Commentary ~ 2/3/2010

3:00pm
A break of 109.55 to the downside will be the trigger for the continuation of this sell off .. so far my 110.40 level has been holding very nicely but there’s obviously an inverse H&S on the 10 minute SPY over the last 4 days.

2:50am
The market his my target of 110.40 on the SPY… this is the 38.2% retracement of the move lower thus far. While this would be the place where i’d feel comfortable to short,
yesterday’s performance was a little too bullish to go confidently short, I would like to see an intra day reversal first or a break of the wedge formations formed by the last 2 days of trading in financials (XLF, GS , etc…). You can take some SDS with a stop 0.4% out… or short SPY 110.40 with a stop slightly above yesterday’s highs maybe 110.65.

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Sun Tze is one of the founders of FocalEquity.com. After going through multiple transitions, Tze, Charlie Cheng and their new team are bringing new changes and features to the new FocalEquity.com in 2011. Tze is specialized in financial modeling and has a masters degree in Finance.