Today’s price action and candle
look sound as closest like a bell ringing to sell the S&P as you are going to get. Yes, we jumped the gate a bit early in our recent short and are very cognizant the market psychology has changed but this is a set-up we cannot pass on.
Today’s price action rejected the S&P very close to the 50-day and generated a gravestone Doji candlestick, which have signaled a short-term top.
The overnight futures are a bit underwater but we will be looking to get short on any pop. We have a limit order to sell 5 contracts at 2618 with a stop 2645. Note 2643 is the .50 retracement of the current bear market. If we get stopped out and lose money on this trade, we will have to reassess our market view.
May have to sell lower, however. Wish us luck.