Markets rebounded today but finished off their highs. Our SCO position lost 2.5% today but still remained above our stop. Our stop was raised today to $15.16 (see chart). The candlestick pattern left by todays action in SCO as well as in the S&P ETF SPY are called Harami. A Hammer was put in by the Russell 2000 ETF IWM and the Powershares ETF QQQQ placed in a spinning top on 38.2% fibonacci resistance. While all these patterns need confirmation they do set up for a reversal - perhaps we will get follow through tomorrow (or not). Whichever way it breaks will setup the short term direction of the market.
Disclosure: Long SCO