$SPY opening slightly higher as traders are now counting that the Fed and the ECB (European Central Bank) will act and interfere a disaster. 89 percent said they believe the ECB will purchase more sovereign debt and 78 percent said they expect the Federal Reserve to undertake additional quantitative easing.
I personally believe that the ECB will act, but the Fed doesn’t really need to do anything right now. Most of the earnings have been positive, even in the face of uncertainty from Europe. We all understand the possible head winds, but we have to agree that these are two different economies.
To better illusrate this, one just need to take a look on this mornings economic data, and you will see that personal income up 0.5%, est. 0.4%; spending unchanged vs. 0.1% est.; core price index Up 0.2%
$SPY 1st support is 137.89, 2nd support 136.96, and 3rd is 135.47 (a few digits above 100MA).
$SPY 1st target is 138.88 , 2nd is 139.25, 3rd is 139.64, and 4th one just for fun is 140.16.
Trade what you see not what you think.
