Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Halftime Report, Tuesday November 10, Testing Critical Resistance

 The SPY tested the 110 mark early in the session, getting as high as 109.93. As expected, 110 acted as major resistance and SPY has pulled back significantly from those highs. The Financials (NYSEARCA:XLF) and Russell 2000 (NYSEARCA:IWM) are leading the markets lower today showing relative weakness. The VIX is down .8%, the TRIN is definitively bearish, and the TICK is bearish as well.

I almost made a trade in EDZ this morning at 5.51, but price took off without me so my order did not fill. No big deal. Depending on how we finish the day, I may pick up some shorts after hours anyway, for a swing trade (swing trades last anywhere from 2 days to 2 months on average). My goal with the swing trades in inverse ETFs would be to capitalize on the next down leg.


If we close at this level, we will have a shooting star reversal pattern on SPY. That would be the beginning of a double top formation which is very bearish. Be careful going long today as things look a bit dicey so far to the long side. Thanks for being a part of! Always trade with a stop loss and manage your risk appropriately.

Happy Trading,