Stocks

ETF Trading with Larry Connors: How Much Longer for the Low Volume, Short Covering Rally?

Overbought is now more overbought. The low volume, short-covering rally which went into full force on Monday followed through until the last few minutes yesterday. Then reality set in.

The 2-period RSI of SPDR S&P 500 ETF (SPY | PowerRating ) and PowerShares QQQ (QQQ | PowerRating ) are both above 90 and, as we've seen so many times in the past, it may last a few more days but it's not sustainable. A short term pullback is due.

The above is from Larry Connors' Daily Battle Plan .

To learn more about the Daily Battle Plan - including access to Larry's daily ETF trading signals, click here for more information.

And for more on ETF trading, be sure to visit us here to check out the book that Stocks, Futures and Options (SFO) Magazine called one of the best trading books of 2009: High Probability ETF Trading: 7 Professional Strategies to Improve Your ETF Trading .

Larry Connors is founder and CEO of TradingMarkets.com.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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