SPY opened at R3 and held together for the entire day, ultimately closing at R4 and the highs of the day. The Ergodics and ADX were in sync. a bit surprisingly, but the markets liked the overseas markets over the weekend, especially China, creating the stimulus for a relief rally. SPY is now short term overbought and the one worrisome note on today's action was the extremely low volume....only about 70% of normal, whereas the previous 2 weeks have often seen volume 2 or 3 times normal.
Tomorrow we'll see how much of today's surge was short covering but I ultimately expect more volatility ahead of the FED meeting on the 17th...only 7 trading days away.