Friday November 21, 2014

$SPY The major averages continue to digest some of the recent gains but are still keeping an upward bias. While negative divergence is showing in some of the technical indicators and internal breadth numbers downside looks limited. Stocks will most likely drift higher ahead of the upcoming holiday week.

In light of the surprise move today by China to raise rates in an attempt to spur growth I will be looking to trade the .SPY141220C207 after the Open today, but with caution.  The Russell 2000 remains weak and with a Sell signal so all is not well today.