Don't Press It Too Far

There was some profit taking into the close, just as I had anticipated. This is to be expected after back-to-back rally days into stiff overhead resistance as well as impending uncertainity concerning tomorrow's FOMC meeting.

The pattern of having a gap up at the open, a morning rally, a lunch time or early afternoon flatlining followed by a rally into the close usually works best for the very first day it occurs. On the second day, short-sellers have been washed out and traders who took the correct side are more eager to protect profits. Hence on such days, long positions should be taken off at least 45 minutes before the close.

The futures are well off their intradays highs now after the closing bell, especially the RUT.