TECHNICALS-SPX

Markets are set to open higher on the heels of anticipated reduced mid east tensions/lower oil prices/higher overseas prices. The SPX 500 should open about 10 points below its recent highs in the 1,440 area which also is the 76% Fib retracement area. That level should also get the 2 day RSI into short term overbought levels near the 90 area; so it may be a level to take some inventory off the table or a warning to trail your stops.

The volatility indexes are sitting about 5% above their 10 day SMA levels and may deflate quickly and head to oversold levels on the morning pop.

Just a word to the wise to not let profits escape as I anticipate the recent high at the 1,440 level to be tough to bust past.