The battle between the bulls and the bears at the 50 week moving average on the SPY was won by the bulls yesterday.
Once again, the buyers came rushing in to keep the price above the key support of the 50 period average.
See the chart below.
Yesterday, I added to longs. As the day progressed and momentum swung towards the buyers, it made sense in terms of risk reward to add to long positions. Buy at support, lighten up at resistance.
The outlook remains less than perfect for long positions, as usual, with plenty of supply overhead to keep prices in check, and the most recent SPY highs to offer additional resistance to a move higher.
Despite the obvious risks, I remain biased to the long side.