~reposted from pebblewriter.com
ORIGINAL POST: 9:30 AM
It concerns me that SPX has broken out of its RSI channel, but nearly every other index has not. It's entirely possible SPX is merely showing leadership and the rest will tag along, but I rather suspect that SPX is getting ahead of itself.
There's a channel line just overhead at 1337.30 or so that should limit the current rally. Given the way the futures behaved over night, in equities, the dollar and the euro, I'm going to fade this ramped up opening and see if it settles back down.
And from the 1:30 UPDATE, with SPX at 1322:
"I think it'll be choppier than that, testing as low as 1303.47-1308.88 over the next few days leading into OPEX."SPX closed today at 1308.93 after hitting an intra-day low of 1307.73.
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