Once again the market traded in a fairly narrow range so not much has changed since my post yesterday. As I stated yesterday it would be nice to see an overbought confirmation (to go along with the other bearish signs), at least intraday, in the S&P to increase the bearish edge. A test of the 1540 area should bring the underlying SPY close to an overbought area and could make for a nice short play. However, a sustained move above 1540 could negate any meaningful move to the downside. The S&P needs to move below 1530 and hold the move before for a short-term correction can be considered.
Overbought/Oversold levels for June 19, 2007
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SPY - 66.9 (neutral)
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DIA - 63.3 (neutral)
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IWM - 66.0 (neutral)
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QQQQ - 71.5 (overbought)
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GLD - 64.8 (neutral)
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OIH - 79.1 - (overbought)
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