Clearly, today's selling was not due to pure selling....I think it is due to short selling. So whenever there is short selling, there will be a bounce sooner or later.
If you take a look at the chart of SPY, stochastic indicator shows oversold with positive divergence.
Crude Oil prices are under pressure today due to the weak GBP and EURO.
We need to observe the major currencies tomorrow to confirm the trend. Shorting or going long blindly is a big risk at this point.
If there is continuation of selling the next SPY level is about 750.
blog comments powered by Disqus