Sell the news ?

Yesterday's Fed induced rally looks like it wasn't enough to prevent the oscillator declining and will most probably create a sell signal today – unless we get a rally of +10 points or so. Unlikely at the moment due to the negative futures (-6), but not out of the question.

An oscillator sell signal isn't necessarily a short signal but does imply that any rallies will not have legs and that it is relatively safe to sell credit spreads above the recent highs.

A move below 1954 sets up a short signal.

Chart of S&P500 for 10 July 2014

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