Thursday, February 20, 2014

Momentum Reverses....Again...2.20.14

It's down, it's's looking for the next trend.  Early morning weakness looked like this was going to be a follow through day but hen buying kicked in and remained evident for the rest of the day. 

Options expiration tomorrow may have had something to do with today's pop as option traders try to push momentum in their direction but the sluggish rebound this morning was a sign that the bulls are still in charge. 

On the other hand SPY overhead resistance is still in effect and the number of double tops on daily bars is huge, coupled with most of the indices now flashing RSI3 readings in the 90s makes this a frothy time to initiate new longs.