I am back to a leveraged short position in the markets. After reviewing the charts and seeing weekly resistance being tested in the SPX I decided to re-enter my positions I exited Friday and Monday.
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| SPX Weekly |
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| SPX Daily |
A daily close above 1793 on the SPX will probably negate the current down move. However, I expect a move to 1650 before this round of selling is over. The next 3 days and 1st week in February will be crucial for the bulls. As shown in the chart below, once 1750 gives we should see a quick swoon to 1650-1700. At that point the backbone of the bull market will be broken. Volatility will be the name of the game in 2014 and should be a great year for traders.
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