Despite the nasty market action (or beautiful if you are short), bears still need to take the low of around 1070. Needless to say, bulls have to defend it.
The whole price structure from the low of August 16 looks corrective at this moment. Even if I am right about that, it does not mean that it cannot keep correcting upward after this drop is over.
If bears cannot cut the low of August 16, we may have a higher low in what seems like a corrective structure -- not fun to trade things like that.
The short term swing after this rush down may show us more about the nature of the short term waves.
Anyhow, we are close to 1070, OpEx week is living up to its reputation, so, I thought maybe lightening up a bit and/or eyeing some insurance/hedges would not be a bad idea.
This is one hell of a tricky market to play as a trader :-D
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago