S&P has been on a tear of late and will likely see the gains continue to pile on going forward. However, the market is over extended in the very near-term, and stocks simply do not go up over time the way that they have over the past two days. With that said, I think that early next week you could see some sort of profit taking creep in – not a lot, but enough to keep the bulls honest. When that happens, that is when you will want to add new positions to the portfolio. Remember typical rallies, over time are marked with higher highs and higher lows – what we have seen over the past couple of days is nothing but new highs.
Here’s the S&P Chart Analysis.
