Daily Trading Videos on Options, Stocks, Futures, Forex markets

SPX Getting Too Far From Its 9 SMA

July 12, 2016

The excitement of closing at an all-time high is being tempered with the fact that the SPX is severely overbought, and stretched too far from its 9 period EMA. Many traders are expecting a "reversion to the mean trade," where algorithms start selling stocks until they catch up with their respective short term moving averages.