Be Wary – Today’s Bull is Tired

Traders, this gap in futures this morning is really pretty. I know. It’s what we’ve all hoping for…a continuation of this beautiful rally. But remember, the 153/154 level for SPY is multi-year resistance and the only news hitting the tape this morning is that Italian election results are looking to favor Bersani.

Other things to keep in mind: the U.K. was downgraded by Moody’s today, people are expecting Bernanke’s testimony to boost the market, and bearish bets for Friday’s sequester are very high.

If Bernanke doesn’t give the market the juice it needs to keep this rally going mid-week, things could get really ugly by Thursday.

Be careful buying in at these levels. Good luck!

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