Trading against the trend recently and against the momentum has been a sure way to get your portfolio killed. No sell off will come easy at the moment with the Bernanke put into November. The early part of the day felt like panic buying and then the bids dried up in the afternoon. I have read the words “blow off” top twice today. Its divergence galore but it doesn’t matter until we have one big down day that sticks into the close. Max Pain has SPY below 115 but we also have a nice round number gap around SPY 120.35.
A late night funny thought: With the NASDAQ above April highs, will the S&P join tech? The first QE gave the S&P a 500+pt move off the low. Assuming QE II is half the size and we had already rallied 130pts, is there another 120+pts on the table?
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