Monday, February 10, 2014

Now Overbought...2.10.14

It was a yin-yang day with both XIV and VIX running in the green for the first 90 minutes.  Its usually a bearish sign when these divergent volatility indices are both positive and we did see some companion selling before the VIX gained the edge. 

Early weakness was followed by afternoon buying but ultimately the majors were left flat although QQQ continues to outpace SPY (should be bullish).

Technically (at day 3 of the "rally") we are in an overbought state, which seems to be confired by the M3 SPY Short Term Alert.

Market watchers are poised to  hear from the new FED chairman tomorrow although no new policy changes are expected.