Very Overbought With Little Room To Run

**These are my thoughts on the SPY ETF in my Daily Trade Ideas which includes many, many more charts and setups. Subscribe to my nightly Daily Trade Ideas on the right to see the rest of this letter.**

“Good things come to people who wait, but better things come to those who go out and get them.” –Anonymous

We’re overbought now with not much more room on the upside before I’ll be getting into shorts.

I tried a small FB short today and took a little loss quickly as I tested the waters that are not yet ready.

SPY February 18, 2016So, we’ve got two scenarios here.

195 is resistance and a likely target for this strong move before we either back off and see weakness back to the 185 area, or we consolidate to work off this overbought condition.

Either scenario is fine by me and we should soon know.

We should either back off 195 strongly or hug the range between 195 and 192.50 to form a bull flag we can trade if this move is to go higher.

2016 remains very tricky and the trend is down so for now I give more weight to the larger move lower but that can change quickly.

Have a nice night.

Warren

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