Loading ...Say bye bye to SPY
SPY dropping like a Stone now. I have short positions in SDS, QID, and BIS plus some June Puts on AAPL.
(Also a small position in UVXY, the “Widow Maker” from yesterday)
2030ish on the SPX is critical here, IMO. If it is going to bounce, that would be the spot.
This is it…ominous on OPEX week! SPX 1950 is likely in the next few weeks then we see. In my opinion only. Nice to see gold and the PM stocks acting well in this environment.
I’m still not as convinced as you guys are that the S&P has officially rolled over. I am neutral on the S&P and have no position. Here is a link to monthly chart I created in Aug 2015 showing the 20MA as a signal for trend change once it turns into resistance. Until 2000 on the S&P turns into resistance I will remain neutral.
http://schrts.co/gwl6xa
Also here’s my fib level I’ve been watching: http://schrts.co/adBa4E
The multiple bounces on support suggest to me a bounce is more likely. Even the Fast Money guys and interviewees on CNBC are indicating they are short the S&P. A market breakdown doesn’t smell right here and my charts don’t support it.
Mark, I am open to being wrong if price breaks above and stays above the red resistance line on my wedge this will be bullish for stocks. A move below my Green support line is bearish, IMO based on my Cycle analysis. Normally the SPX makes an Intermediate Cycle low (major low) every 5-6 months. This got out of whack in the late stages of the Bull as the ICs were stretched to 7, 8 and even 10 months near the end. In Bear markets ICs tend to get shorter (e.g. 5 months). Aug to Jan was 5 months and my expectations are that we will see the next IC low in the 5-6 month timeframe (June/July).
We should know fairly soon which way it breaks.
https://goldtadise.com/?p=369895