Tuesday, August 20, 2013
What's coming next?
Getting flat in a market that is not acting quite how you think it should, is always a smart move. That's what I did this morning after getting whipsawed long and short over the past 24 hrs. Now that I have had a chance to get a new, unencumbered view of the markets, a clear path has re-appeared. As oversold as the market was at yesterday's close, I believe that today and tomorrow SHOULD be huge up days. However, the clues that I am spotting in today's market action are suggesting to me that there is more downside ahead, starting as early as tomorrow. I will be using /es 1670 as my uncle point and will probably start adding to the short side again in the low 1660's. There is a lot of technical resistance in that area and I believe that is where serious selling will re-enter the market.