Monday, June 22, 2009

Big Profits Booked for the Shorts Past 6 Days, More to Come; June 22, 2009

The markets continue to fall as planned. Above is a 15min cash S&P chart showing that the market is falling in 5 waves (impulsively) and rallying choppy corrective waves. Breadth and internal strength of the market continue to be extremely weak telling us that the bulls are exhausted and the bears have full control. Technicall, a small degree 5 wave decline appears to be completing as shown above so caution is warranted for getting aggressively short term bearish at this point. However, this was an across the board very strong selloff which tells me most likely we'll see further declines in the very near future before a meaningful bounce. I closed a very small short S&P position today because I feel I just have to take at least some profits when the market falls this much in a day. I will add that position back if the market rallies tomorrow. But as of now, it appears the market will fall further in the coming days or weeks, and I'm on full alert to see if the big wave 3 down is underway or not. Right now it's inconclusive.

No comments: