SPX Heading Towards Overbought?

Good Morning,
I am pretty glad to see the SPX heading into overbought territory again and if we get a good jobs number tomorrow, hopefully we get an early pop before profit takers and short sellers come in ahead of the weekend. There you have it, my trading plan for tomorrow. And to throw in the ever-important "inter-market relationships", if the USD weakens further, I would like to buy it at a discounted price. IF these inter-markets relationships work.

That is another point! Every day is different. I have been saying this over and over!  Today both the GBP and EUR initiated more QE. I have a feeling the markets are going to be fun for many, many years as QE gets extended.
Forget QE causing inflation, it may cause stagflation. I called stagflation in July of 2009 and I am sticking to it - the beginning of it has just been extended due to QE 1 (TARP) and QE 2.
To the charts we go and let's start with the SPY. Come on 1170ish, as I am ready to throw on some more October protection! The first chart is the 3 month so you can see support and resistance and anyone who puked or shorted at the bottom is not feeling so good. And if there are some more shorts out there, hopefully they puke on a good employment number tomorrow and that get's me to the second chart - using Fibonacci's to set protection at "the line of death":

Past performance is not indicative of future results

Past performance is not indicative of future results
To forex and I jumped the gun today. There was one good trade - sellilng the weaker GBP/USD when the stronger EUR/USD stopped rallying. I just got a little focused on the EUR/USD and jumped early - didn't get hurt, just didn't get anywhere. But love the DOUBLE FALL LINE TRADE on the GBP/USD. Both charts starting with the EUR (arrgghh!!):

Past performance is not indicative of future results

Past performance is not indicative of future results
I may update after the jobs number tomorrow. If not, have a great weekend!

Happy Trading and Be Environmentally Cool
Coach Brian
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.