TRADING JM

[TREND1]

S&P 500 SPDRS PULLS BACK FROM OVERBOUGHT CONDITION... My Wednesday message showed the S&P 500 SPDRS (SPY) up against resistance at its summer highs. It also showed the 14-day RSI line having reached its overbought barrier at 14, which increased the odds for a consolidation or pullback. Chart 5 shows the RSI starting to slip even more. That increases the odds for some weekend profit-taking. Chart support is likely near 206 and/or its rising 200-day average (red arrow). Any pullback, however, showed be viewed as a pause in a longer-range bullish trend. We'll take a more in-depth look at how things look over the weekend.