NEW YORK (Real Money -- Yesterday's selloff was enough to get some traders' attention, but we are right back in the green this morning, despite some disappointing economic data. That's not to say that today is already in the books as a day for the bulls. The ISM and construction spending numbers were enough to knock equities off the high of the day, so there is still an opportunity for bears if they can get the market into the red today.
In order to get more aggressive on the short side, I am watching for a few technical indicators. We haven't seen them yet on the SPDR S&P 500 (SPY), although the technical picture for small-caps is not nearly as pretty as for large-caps.
On the daily chart of the SPY, first and foremost, I want to see it close beneath the 13-day simple moving average for two days in a row. We have dipped below the average several times intraday but haven't closed beneath it since the middle of December. That speaks to the strength of the bulls and resiliency of the market.
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