SPY Read for the Day - February 9, 2011

We are walking into today with a moderate gap down, SPY is down .50 DOW is down -22. This market has simply been acting like a crack baby, any good or bad news has grinded it higher, its getting ridiculous, we are so overdue for a bloody day. Is that day today? I don't know, but am prepared either way. Rising wedge on the SPY in anytime frame, just a matter of time before it cracks. Levals to watch today are losing 132.00 which will drop us out of the wedge on the 60min. First gap area is at 131.43-131.15. Theres a small shelf of support at 131. We have option expiration next fryday, a lot of times we make a low the Thursday prior which would be tomorrow. We just may be setup for some selling/profit taking into tomorrow morning. As far as overhead resistance is concerned we have SPX 1338 just overhead. Yesterday we printed 1325 just about. I am light, only core short I have on is the OIH which started to breakdown yesterday. So many divergences in this market makes it very difficult to employ much capitol either way. We can not choose the market we trade, just have to make due with what we are handed. Trading is all about your toolset, and you will need to reach in thaty tool-box from time to time to change it up. You must adapt to what the market is giving you. We all know this market is due for a breather, but we have never had an environment like this with the quantitative easing. Keep a very short time-frame in mind, and you will be fine.