Seven reasons we are glad we have short exposure.
1. 38.2% Fibonacci retracement level was tagged and promptly turned back.
4. The pink line is setting up a short sell Pullback Off Lows (NYSE:POL) trade set up.
5. The S&P 500 hit the 200 day average again.
6. The Full Stohcastics are overbought
7. As shown in the charts below of the short term move off the recent 1040 level lows we’ve staged an Elliot Wave ABC up (Wave 4? for you Elliot Wave followers)
All of this bodes well for our short sells which by the way after making us sweat a little for a few hours are rolling over as we post.
Any break of the Pink Lines to the downside sets the ball rolling for a retest of the lows (5th wave?)
Even AAPL has been struggling right here. Why? Because it’s at resistance that’s why (Red line that has been on this chart for weeks).
In order to get us interested on the long side we need to see either a retest of the 1040 level on the S&P 500 or some sort of Pullback Off Highs (NYSE:POH) pattern form.
Right now we are fine right where we are with exactly what we have out there.
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Disclosure: No positions