As goes January, so goes the rest of the year

The opening line of today’s Opening View from Schaeffers Research – as goes January, so goes the rest of the year – Opening View: Battered SPX Facing Technical Hurdles

As they state and I had in recent posts the SPX (SPY) is facing some major technical resistance to the up side, which is why we placed a Bear Call Spread on the SPY last week. The option spread is doing well especially after a weekend of no trading (we like when the market doesn’t trade, more time value off our trade). In Schaeffer’s article this morning they are also pointing to some bullish tendencies in the market this morning. This is OK our trade is safe for the time being as we have two levels of resistance to go through and since the markets are having a difficult time trying to push past this first level of resistance I suspect the second level will be even more difficult, especially if the saying holds true – “as goes January, so goes the rest of the year”