A Sell Zone Is Fast Approaching
The powerful rally off Tuesday's extremely weak close has lifted both the Dow Industrials and the S&P 500 up to a key resistance zone. The SPDR DJIA (DIA) is approaching Monday's highs and is now within $0.50 of filling the breakdown gap left behind after this week's open. The SPDR S&P 500 (SPY) is a bit further away but appears on track to move past Monday's peak.
In the near term I believe the sharp upside reversal off the Tuesday's lows is becoming overextended and a pullback will begin soon. Earlier this week I was on the buy side but now believe some hedging makes sense. Both the DIA and SPY are approaching areas that will likely offer a challenge to further upside....245 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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