Alright well there is not a ton of new information to share with you other than we are more extended (not a bearish thing). We are still in an overall uptrend but could obviously use some consolidation before trading higher. I know I said the same thing yesterday but sometimes the market does not give you what you want and that was the case today. We are extended so I think using a prudent approach with new longs is wise but also be extremely selective with those shorts. There have been short squeezes everywhere lately and I would hare for you to get stuck in a short position because you are fighting the trend! 

I hear people on Twitter every day that being extended is a reason to short, NO! Being extended is a reason to be prudent with new longs, not to be short. The only shorts it looks like you will get out of this market right now are little day trades (even those must be quick though).

I will cover all this and more in my week Ahead post that I post at 10:50 AM on every Sunday. In this post I have 2 videos (3 this week), 20+ annotated charts, and a solid 3 paragraphs. The purpose of this post is to prepare you for the week ahead and how to trade the stocks and some of the ones that are on my watchlist. I highly reccomend you coming and checking it out, it is a lot of work but I enjoy it and am proud of it.

Have a good weekend! 

Here is your $SPY chart –
5-17-2013 SPY

Acceleration – Daily Analysis