Too Bullish To Short

To summarize the price action yesterday: Basically SPY is suppose to be pulling back so no one is buying but at the same time the same would-be-buyers aren't eager to sell here because they realize that SPY could jump up at any minute. Yesterday was a good day to sit out and do something else besides trading stocks and today may be the same kind of day again. Still, the uptrend (B) is broken so SPY should pull back. The farthest I see SPY pulling back is 109.8. But that sounds like a lot to me and I feel it's more likely that SPY holds support at 110.7 and reverses to the upside from there.

One more thing to note is how Gold sold off yesterday. This was the weirdest event that took place yesterday and was highly unexpected- especially given that the dollar and treasuries all pulled back yesterday. If investors continue to dump Gold, bonds, and the dollar then I view this as a flight from safety (gold) to risk (stocks).