TECHINICALS-SPX

Markets closed near the unchanged level on Friday after gapping higher in the pre market on the heels of tame inflation news. Buying Friday gaps higher is not my favorite play and markets drifted lower for much of the day and market internals closed in the red with about 350 more losing issues than winners.

Even with the mixed close the SPX finished the week with a high 2 day RSI reading in the mid 90's and the VIX closed about 9% below its 10 day SMA, so it unlikely that we ramp higher from these levels next week. In addition, I expect the pm's to throw in the towel on the rest of the year and protect gain and not chase stocks.