SPY Read for the Day - February 3, 2011

Very small gap-down this morning with the SPY down about .30, DOW futures down -14. Yesterday we digested near the upper range of Tuesday's candle. We have a major problem in Egypt and the market is just laughing it off. It all "feels" wrong. At some point you would think that it would matter. Know this, if this shit over there escalates, we could just wake up to a 100 point gapdown, think about that as you are loading the boat with longs. Wait a minute hmmm big gapdowns, man I must be dreaming, that doesn't happen anymore, lol. We are fighting the FED which is 100% pointless. Gap overhead to fill @ 130.48 and one underneath @ 128.68. We also have the USD tagging the 3 year trend-line on the weekly under it at roughly 77.00. Which I expect to hold at least for a dead-cat bounce and so far we are seeing that. As I have been saying I believe we are in a topping pattern and to expect new 52 week highs on any day. We all know this market is due for a breather, but we have never had an environment like this with the quantitative easing. Very hard to be "Balls to the wall" long up here, although there are some awesome setups emerging, but at the same time, you just simply cant short the market. If ya must try to slip into your bear suit, please stick to the equity's. As far as resistance we have 132 overhead, with major support at 126.00. Gonna be interesting to see how we trade "IF" we get there. Be careful up here. That is all.