Tuesday, September 7, 2010

Cautiously bearish...

Price was rejected at the trendline as predicted. So far the market has sold off 14 pts on the SPX and 17 pts on the futures. We are nearing the 20-25 pt wave 4 correction zone I mentioned yesterday. There is lots of setup here for the market to just drop, so I'm keeping my stops tights (1 pt over the hourly 8 SMA). If we're going to run, I'd like to see a 30-40 pt down move either tomorrow or Thursday. If we hold the 1080/1085 zone, then I'll be closing my shorts and possibly dance lightly with the bulls. Let the market lead the way.
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