We need to close in RED today across the board. With FOMC coming tommorow, this is a good day to take profits for the traders, and they will do that towards the end of the day.
The technicals are suggesting that the rally is overextended and needs a breakdown atleast to test the 740 area on $SPX.
Update after close: Seems Market is going to test 810 on $SPX after retracing somewhat tommorow morning. If we get a panicky sell-off tommorow after FOMC (a little unlikely scenario but you never know), then we go right back down to test 740. In midst of so much going on daily at Washington and Ben's 60 min. interview, I think that markets may stabalize a bit until mid-summer and then we will see a big sell-off depending the earnings and outlooks are dismal again. If not, $spx at 670 on March 6th may be the bottom that we may look back upon.
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