Where this market is headed to this morning depends on how we open the trading session.
As of now the SPY is in overbought territory, so I wouldn't be surprised to see a retracement of up to 50%. It all depends on the buying momentum of this rally, overbought
conditions does not mean that the market cannot keep on rallying.
So the first sign that I am looking for is how big the gap down or gap up is going to be...and then I will make the necessary adjustments to my trading plan.
If we break 91.96 today, this rally can continue higher to 93.30 then 94.95. If not I am expecting SPY to close unchanged and continue lower tomorrow...hence continuing to trade in a range of 82 - 92
I am keeping my watch list smaller due to the fast paced market:
Possible Shorts: GS, IWM, ERY, FAZ
Possible Longs: GS, IWM
