Written by: dpavlatos
7/28/2009 7:01 AM

The S&P’s continue to move higher for the 11th day in a row. We began this move when the H&S failed to

the downside early last month. Once we got above the shoulder line and closed above the 30 SMA of the

highs on the daily’s it was clear we had a major U turn to the upside coming. Good earnings and better than

expected news releases fueled the market up and squeezed short sellers out slowly. There is no doubt

we are over bought short term but that doesn’t mean anything. In 1998 –2000 we rallied in overbought

conditions for practically 2 yrs. Let the market show a real reversal before getting to bearish.

I think we need to get below 950 to give me a reason to look for a bigger correction. For now any extreme

dips are probably a buy.

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