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Positive Divergence On SPY Playing Out As Anticipated.

|Includes: SPDR S&P 500 Trust ETF (SPY)

The positive divergence I outlined in yesterday's InstaBlog post played out on this morning's open (Feb. 3, 2016). See article here:

However, the positive open faded quickly with the opening gap-up on the SPY being closed rather quickly and then taking out yesterday's low. This is bearish, and is a reminder that, yes, we are in a Bear Market. The S&P 500 is still positively correlated to crude oil so we will have to see how the remainder of day plays out. However, in this type of market it's probably best to use these oversold rallies as an opportunity to raise cash.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.