Weekend Notes

notes for Monday, Apr 13/09

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Here's a chart of the SPDR S&P 500 (ETF) (Public, NYSE: SPY) from around this time last year:



Here's a chart of SPY for the past 6 months:



Is that deja vu or what? In the case of last year, SPY pulled back until mid-Apr/08, and the correction did not drop past the Mar 31/08 swing low; SPY went on to rally until mid-May. Will we see a similar behaviour?
NYSE McClellan Oscillator is in overbought territory, $BPSPX has surpassed Feb/09's levels, and the $SPXA50 is above 420. markets have been overbought for most of last week. The signs of a pullback are there, and that is how I plan to play it.




I will also be looking for confirmation of the continued correction in the Euro: