Monday, August 17, 2015

Hope Springs Eternal...08.17.15

SPY enjoyed another green day today making for the first back to back up days in August. Initial economic reports were negative dropping SPY to sub S1 levels at the open...but then the market's bizarro logic kicked in and the news feeds announced that bad news was actually good news since it diminished the odds of the FEDS raising rates in September.  Since its an open secret that the financial sector is betting all in on rising interest rates to fuel their earning next year the markets reversed course ...again on low volume...and shot up to R1...ultimately closing on R2 and now solidly overbought with an RSI2 vale of 98 (out of a possible 100).