The bottom line, the trend is up but pretty overbought now. So I expect a pullback soon and the pullback shall not be small according to the NYMO extremely overbought pattern mentioned in the weekend’s report. Trading wise, however, even I expect a little bit bigger pullback, I’m not shorting this market yet because it’s generally not a good idea to trade against the trend.
A little little little little bit bearish toward tomorrow at least most likely the SPX won’t be up big like today (for “not up big” I mean less then 1%) because TICK closed above 1,000 again.
Another trick is when SPY up 3 days in a row while volume down 2 days in a row (so called price volume negative divergence), short at today’s close, most likely profitable within 6 days.
