Near Term Trend: Positive
Friday’s Close: 2191.95 (+ .20)
UPDATE: Since the Election on November 8, the S&P 500 Index (pit trading only) has gained 4%, documented a new historical high, just above 2214.00, and depicted very little signs of relenting. In our last report (market had settled at 2213.35), we stated, “On a near term basis, it’s certainly overbought, based on the 9- Day RSI which is at its highest level (78.23) in nearly two years. A reading back below 70.00 could be an outright sell signal”.
The very next day (last Monday), the RSI settled below 70 (current reading is 56.51) - see chart. Aggressive traders could have initiated a short position based on that alone, however if you did go short keep stops tight- just above 2200.00. Index sold off 25 points this past week.