SPY Read for the Day - February 1, 2011

We are walking into a moderate gap-up today with the SPY printing a high of 129.50, Leaving another gap to fill at 128.68 under us. More than half of Friday’s losses have been recovered. Not bad considering Friday was the single worst day since August. Fryday should have marked the beginning of a pullback, but there is voo-doo in the markets right now, the market will try to cause the most pain to all involved on a daily basis. The technical's are not working in a normal ebb and flow for a while now. While we are what I believe to be a topping pattern, new highs can happen and wont be ruled out. The daily fell out of a rising wedge and today is back-testing the uptrend line of same. We are smack in the middle of support and resistance channel. With 126.00 under us, and 132 overhead, basically range-bound. Place your bets really. If we were to see weakness today, the gapfill is the obvious first target then the 20MA @ 128.27. We also have the USD rapidly approaching the 3 year trend-line under it at roughly 77.25. Which I expect to hold at least for a dead-cat bounce, It has seen 77.41 here in the pre-mkt session. Stay on your toes people, hit and run trading still is the plan. Take them profits quickly.