Tuesday, November 29, 2011

All Bull Runs Start With Short Covering

SGS is LONG (As of close of 8/24/11) 

Yesterday's rally was mostly short covering of future contracts of indices.  Volume was weak, but internals were all positive and bullish.  Small caps led the rally yesterday and finished strong at the close. 

I think chances are good for indices to go continue their rally today.  A close above 50 D-SMA (around 1203) for SPX would be bullish and would force more short covering.

Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation.  Furthermore, the opinions expressed may change without notice.