It doesn't look that this market has any intention to go down. It looks more like a pause before another move on the upside. After going down 8 points in the morning bulls got in control for the rest of the day. For this market to go down we need to see exactly the opposite type of movement, market trying to establish a higher high in the morning then bears to move it a little bit down towards closing. Market moved a little bit bellow EMA 50 but the move was so short lived it wasn't caught on hourly chart. As soon as SPX touched 1,312 it took only 15 minutes to climb back to 1,319.
No matter how overbought this market is, it's not going to go significantly down in the absence of some bad news. If a 14% plunge of CSCO, one of Dow components, couldn't move the market down I don't know what could. Mubarak's resignation? Just kidding.
This is not a good time to buy but it's risky to go short as well since nobody can know for sure how much this market is going to rise. The market became hugely overbought since January 19 when it reached 1295 but the bulls couldn't care less, they pushed SPX another 30 points.
The dollar went up a little bit without affecting the downtrend.
VIX went 1.3% up but is very close to its lowest level in one year.
Do you want to know what ETF rallied the most (as far as I am aware) in 2010? BAL, the cotton ETF.
SGG, the sugar ETF rallied too but not YTD, only from June until now.
SPX is 4 points down after hours. Well, it was 8 points down this morning...