Despite the poor numbers from AXP AMZN and MSFT last night futures are trading slightly higher as I type but below fair value. Strength probably attributable to overseas markets which are ripping higher again.

The SPX is about 8.5% above the SMA 50 and the last time we had a stretch that far was back in the beginning of June - at the prior highs and just before a significant sell off.

Really don't have to mention how overbought we are - but FWIW the RSI has closed over 90 on the SPX for the last 8 days - not sure what kind of record that is -- but it quite unusual- just like the sell offs last year - overshooting to the downside and now the viscous rally to the upside -

Larry Connors commented on Wednesday that about once a quarter the markets will go on a one way move - but there has never been a time where the market didn't reverse to some degree on a short term basis-

I suspect today is going to be turnaround Friday - not sure I want to short - but I do want to get longer wants some short term oversold conditions hit - and they will.


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