Smart Money is Selling

The rally we had last week was not based on Fed QE3 hopes.  It was based on this Spanish bailout.  We went up 60 handles last week off the lows based on these rumors.   Now we are up on strong resistance at SPX 1340.  The market is overextended.  We have the Greece elections next weekend.   Very few funds will want to buy up 5% off last week lows ahead of the Greek elections.  The only buying going on here is dumb money and weak shorts.  Already we are down more than 10 points off the overnight highs.  I am expecting at least a test of SPX 1300 later this week.