- Nice! SP500 breaking down some more which is good for the SH position (inverse SP). It has pierced the yellow uptrend line since March 2009 and has also closed below its 50 day moving average...showing some weakness.
- SH was bought at 54.8 (stop at 53.7), current close is 56.7.
- The only fly in the ointment is that in doing so it has registered some pretty good short term oversold conditions in a few indicators in the process so one should be prepared for some bounce coming in a day or two.
- NOTE: New SP500 highs still can't be ruled out. So caution is still warranted in my opinion.
- What I'd like to see is a move down into the 1030's then a rally into the 1060's followed by a rollover back down to break the 1030's lows (if that's where it happens). All conjecture...but that would set up a nice lower high swing to then break into lower swing lows which is the definition of a down trend.
- Supporting the downside is sentiment. Below, the investment newsletter writers have a very low number of bears which is conducive to more down in the perverse world of market psychology. Retail investors are more bullish then they've been in awhile too.
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