Like the QQQ, the SPY has also bounced to make a back-test of the recently broken support, now resistance level (141.90ish area). Remember if trading this week that you must expect this type of volatility due to the low volume abbreviated trading week coupled with all the Fiscal Cliff chatter. Best to keep any new position sizes on the lighter-side an either use a hit-n-run, quick trading style or allow for wider stops in order to accommodate these low volume, HFT induced rips and dips. I wasn’t planning on doing much this week but I’m using this Fiscal Cliff Hopium induced rally to add some additional short exposure. Stops on THIS lot of positions will be on a move over 65.50 on the QQQ and 143.40 on the SPY, which is just above the upper price range of the large 12/21 gap down.
