—————— TUES JULY 24 ——————
Google earnings interrupting my put play, their earnings were huge too. Right now SPY is wedged between the 5ma and the 10ma. Based on the weekly trends this should be a period of consolidation and retraction. But building a base here could also be a launching area for bigger movement. So where do we go from here? Futures moved up BIG afterhours, putting SPY over the 281.13 line it couldn’t cross last week. If it holds there tomorrow we could see higher highs.
Market still indicating a pull back to the 277 area but earnings are good so that may be on hold. Like I said last week, earnings weeks are bumpy. Best strategy is probably to ride some of the pre-ER and post-ER waves, SPY is going to be choppy until it’s over. GOOGL was the most anticipated ER this week but one or more bad ERs will retrace those gains.
280.05, 281.13, 282.87, 284.75 are the major levels.