Day Summary

Volume picked up slightly today with selling, a bearish sign and seemed like a distribution day to me. Strong support on S&P lies around 1310-1320 and that could be a good place to buy SPY for a short term trade. I will be looking to buy SPY around that level. Toda was day of commodities with oil making another all time high and that helped lift all the grains and gold. Dollar dropped a little and euro, yen and swiss franc rallied along with 10 yr tnotes. Though I am not a funadamental guy but the long term picture doesnt look too bullsih to me. With oil pointing to 112 and gasoline rising and summer drive season approaching and Ag softs again raising their head we may have some serious problem of runaway inflation along with slowing growth, the worst case scenario for stock market. The point is how much of this scenraio is already priced in by the market and how much of further inputs (such as oil going higher etc) will make it worse. In the meantime there are always tradable rallies in bear markets one like that is what we saw in last two weeks.