Spoos At Critical Level

That little bounce we just saw is not accidental – the spoos are at a critical level right now and today’s close will decide the trend for the coming week.

Spoos – not spoons!! I’m referring of course to the S&P E-Mini futures. Here’s Hank Camp’s little history lesson for the noobs:

So, what is a spoo? It’s real simple. A spoo is a contract that trades on the Chicago Mercantile Exchange. It is the S&P 500 Contract. And a spoo is the current most active month trading, either March, June, September, or December. The symbol for the September contract is SPU, thus the name “spoo”. But the other months are called spoos too. Guess it was to hard to say SPZ’s or SPM’s or SPH’s. Funny thing is that the term did not come from the the folks actually trading them in Chicago. It originated in the XMI pit on the American Stock Exchange in New York to describe how the XMI was trading; as in, “they’re trading off of the spoos” verses “they’re trading off of the bonds”, or “they’re trading off of the cash”.

Okay, back to the presence – this chart is important:

Things looked pretty bearish this morning but then out of nowhere stormed in Bernanke’s own Team Six and pushed the spoos back up – way up. And we are now a tick or two away from the critical 1346.75 mark. The longs must close above this mark today.

Why is it critical? Because it’s our net-lines sell level and a close below would probably get us to 1330 or perhaps even 1300. So while everyone else is probably scratching their heads right now we can spend our time getting positioned near the close today. If it’s below 1346.75 I would want to be short – if it’s above then the up trend remains intact and long position may work.

The only problem I’m seeing with a long position is today’s long wick down. I really don’t want to put a stop at 1337.5 – too much risk – rather, I would probably wait for an inside candle or variation sell pattern.

Cheers,

Mole