TECHNICALS- SPX

Equity markets roared into the close yesterday and the SPX slammed into the SMA 50 which should provide for a first line of resistance - note also the range as we continue to be bounded by 850 on the low end and 920.

Stochastics, however, could be telling a different story as they look like an uptick could be on the horizon.

RSI (2) may bring out the sellers as we are overbought on many of the major markets - note the numbers:

SPX 89

DJIA 89

NAZ 78

RUT 75

NDX 79

MID 81

Note the VIX also pointing to a sell signal as the index is now about 9% below the SMA 10 while the RSI 2 on the VIX is also under 10.

Doubt we get a big selloff this week but next week many of the folks who bought the low end of the range may decide to ring the register.

Links:

Under the radar rebound;

The LOW VIX;

Trading the NEWS;

The RIGHT IRA;

CHIP RECOVERY;