S&P 500 - July 23, 2009 - Intraday

Such is the power of a trend!

We are likely dealing with another extended wave, which gives credence to second wave chart that I posted earlier.

A we discussed, the fact that market is oversold on a daily frame does not mean much, and daily oversold are typically situations where many take notice and join the party.

We have freah short term momentum peaks on 60 and 15-minute charts. This, so far feels like a wave 3 of sorts.

Position maintenance for the bulls, and patience for the bears.

If I really wanted to short today, I would take it slow and look at option spreads.

The value of my hedges no more justified some long positions position. So, I either had to come up with new hedges or take the profit and unwind that portion. I chose to close them.