Monday, May 4, 2009

05.04.09 - Collision Course with 200-Day

If we can keep above the SPY's VWAP/ R2 through the mid-day, we may well see another leg up into the close. I'll be watching those key levels along with the VIX very closely today. Here is a past link from the archives on characteristics of a "Trend Day". I'm not long-term bearish by any means, but short-term this move does put us well into overbought territory across many indices. Therefore, I'm using this Monday pop as an opportunity to hedge and may consider a net short on further upside.

Meanwhile, note below how the S&P500 is setting up to join the NASDAQ100 in challenging its 200-day moving average in the days ahead.

Never Investment Advice

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