HOW LONG?

The markets rip higher this morning getting right back to the oversold area of 14.5 on VXO which is 8% below the 10 day SMA and nearing the important 10% below level. The SPX presently sits at 1256, or about 3 points under the 50 day SMA and the 2 day RSI of the SPX has now ramped up to a 72 reading. So maybe a little further to go but keep in mind that we are in an ugly downtrend. If your not sure of the trend, pull up a chart of the QQQQ that will end all doubt.

Keep in mind that it was just last Wednesday that the markets rallied right up to the 50 day line. The NAZ and the QQQQ immediately sold off to new lows and the question by every trader is will it happen again. The general rule remains, trade the overall trend and short pullups to resistance areas.