Tuesday, February 23, 2010

02.23.10 - Overbought Downdraft

Equities are giving up several days of gains in trend-like fashion.  News catalysts aside, this should come as no surprise to short-term position traders as US indices were highly overbought.  Internals are obviously quite negative, although the VIX remains off its a.m. highs by a hair.  Nevertheless, short of a last hour miracle (which abound in this market), I do expect a somewhat lower close at this time.  I likewise will be looking for support in the low to mid- SPY $109 range, which we are honing in on as this post goes "to press".

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