Ahhh! We sit with our short positions nicely weighted in at S&P 1000. We saw a nice run to 1030 and I picked up some SDS (Inverse S&P) 45 calls almost at the top to add some oomph to my positions, The bulls are hoping for one more big run, then most hope to dump and run. My guess is that too many people are hoping to dump on any rally above 1020.
The long uptrend is still not broken until it breaks S&P 954-960, but my timing indicators showed that you did not want to be long after Friday and that a turn is imminent. I do not, however, rule out a two week sideways movement here - the market loves a good tug of war at the top. Besides, most big moves usually involve a major head fake. I am looking for a strong up day up that somehow turns sour for the bulls. Too many people buying on the dips usually will cause an exhaustion move up then the market springs the ultimate trap. Bond and gold buyers are buying long aggressively, so they sense something in the wind. Usually theses two markets smell the crap before it explodes in equities, so there is some serous stuff coming. Hang on to your positions tight and cross your fingers. The moves at the top usually are wild and erratic.