CurtisM

$SPX SPY $INDU $COMPQ $RUT QQQ IWM, etc.

BATS:SPY   SPDR S&P 500 ETF
128 0 1
News out of Europe guarantees a mega pop at the cash session open. We're going to see indicators push into extreme overbought territory as a result. When the RSI on the 60min charts of SPY             , QQQ             , IWM             , DIA             , etc, push above 70 then it's time to be very, very cautious as market has entered nosebleed zones.

One of two things will happen once the RSI rises above 70 in the 60min charts: 1) We're likely to see a consolidation which will stifle and throttle back any further upside for a while. 2) Markets will reverse as holders realize that all the buyers are in and if they don't lock in profits then they are putting those profits at risk.

On the daily charts of all indexes, it is very likely that the RSI's will also rise above 70 and this too indicates an extreme overbought situation which is also a dangerous situation.

Clues to watch for at the open are $TRIN readings below 0.50 and $TICK readings over +1000 and maybe as high as +1500. These kinds of readings will come partly from shorts who are forced to cover and other organic buying but this is froth and is generally not sustainable.

In other words, be careful in trying to chase             the market higher. It may come back at you hard.

All IMHO, and I could be totally wrong and markets head to the moon in an extended Santa Claus rally.

GL
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