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Daily Stock Market Equity and Options Trading Commentary

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Friday, May 21, 2010

Potential Reversal in the Works?

Traders, I am showing you a quick chart of the S&P SPDR (SPY). We opened near the February closing lows retracing 100% of the move. Now we need to reverse higher and a close above 108.46 on the SPY would be short term bullish and would signal a potential reversal. Of course the day is far from over, and I need to see volume take out the 647 million shares traded on the "flash crash" day, but at very least Thursday's volume. Below is the chart I have as of 10 AM.

Today will be extremely volatile and I don't underestimate a 500 point range! Keep in mind that close is king and the level to watch on the SPY is 108.46. A Similar level on the QQQQ is 44.76, but it did not test February closing lows at open. Sphere: Related Content

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