RUT: Has retraced 61.8% of the move from 2007 highs to Mar 2009 lows. The SPX low on FRIDAY Mar 6th 2009 was 666.79 and the RUT high on FRIDAY Mar 6th 2010 was 666.02 !!!
My thoughts on SPY for next week:
1. Scenario #1: We could hit 115.00-115.50 early next week and then drop to 112.5-112.8 by end of next week. The lower trend line is the key.
2. Scenario #2: We could drop to 112 early next week and then rally to 115 area.
BOTTOM LINE: I think we will see 112.00-112.5 next week.
I am 30% short via IWM Mar 66/64 put spread at 0.52
GLTA
