Today’s market conditions warrant caution and controlled aggression. The levels we are watching in the SPY are 127.20 and 128.00 (resistance), 127.05 (inflection), and 126.45 and 125.00 (support).

Our best AM Idea for today, which we highlighted in our AM Meeting is that more experienced traders should be focused on the price action in market leaders such as AAPL, CAT, IBM, AMZN, and GE. Their price action will give us clues as to whether US Markets will have a significant bounce. Also, SPY above 127.20 would signify a possible bounce is in the cards…

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