August 9, 2010 Market Recap

The market moved very little today, but it is gearing up for a larger move. 10,700 appears to be resistance. It is having a hard time closing above that point. Also, volume was lighter than average for a while. A larger move should be happening in the next couple of days.

The S&P500 is also consolidating between the 1120 and 1130. Because of that I have submitted a call order on the SPY. If the S&P crosses 1131, the I will buy 2 113 SPY calls. If the S&P crosses below 111.9 then I will buy 2 SPY 112 puts.

The NASDAQ is also consolidating. There should be a larger move in the market in the next couple of day. Once it breaks, it should go up or down quickly.