Written by: dpavlatos
7/16/2009 7:27 AM

We had a big reversal in the S&P’s catching short sellers and forcing them to chase the market.

Good earnings and a series of better than expected news releases fueled the market causing

shorts to cover. We had a close above the 30SMA on the daily’s and above the right shoulder

of the H&S formation. Momentum also turned up strong to confirm the reversal. The H&S

that everyone was watching now has failed after good news changed the tone. We also have expiration

this week that added to this rally as well. We have a gap below so there might be pressure to

fill it before we go higher. It should be a two way trade today making the market choppy since we

have expiration on Friday.

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