Update

Well the SPY did not hold the 20 sma on the daily charts. price action declined sharply during the better half of Monday morning when the new of Ireland receiving 90 billion euro bailout from the ECB was announced. This led to a sharp decline in the SPY while the dollar pushed higher against the euro, sending gold higher throughout the day and depressing commodities. We did recover most of the decline in Mondays afternoon trade, just to open lower on Tuesday morning with no real follow through in either direction throughout the day.

Even though we open lower Tuesday morning, it felt like the longs were playing out much better that shorts ideas. BRCM and ALTR both discussed in the Keystone morning meeting played out well through the morning. ALTR within the first 15 min closed above Mondays highs of 34.00 witch provided an solid support area for the next momentum move higher. BRCM had a similar story pushing above yesterday highs within the first 20 min of trading and continued to push higher failing to produce a lower low on the 15 min. chart until the early lunch period.

You did have to be patient with the stocks as bias was skewed to the shorts, but both of them showed relative strength as he market was declining within the first hour. Once the market selling subside both these stocks provided good momentum opportunity.

The next support in the SPY is 117.59 which is practically the same level as the daily 50sma. If price action breaks below these level it could fuel a momentum push lower

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