The market is getting overbought here. Near term stochastics have reached overbought status. In a strong uptrend this condition can persist for some time. However, given the fact that this is nothing more than a bear market rally it is very likely that the overbought reading marks the turning point for a pullback.
We would look for SPY to pull back to the $124-$125 area before putting on any more long positions.
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