S&P500 down 3.27 points today. The critical support at 1085 is the bull and bear battlefield. If the bear lost this support, next support 1075 is fragile before the retest of 1040.
I sold all of my SPXU when S&P500 was at 1086 in this morning. It's not too bad for 12% gain with this trade. Also I sold the rest of ERY at 11 today. I set my limit order at 11.3, but I don't think it will hit my target price today and I don't feel comfortable to hold this stock for 4 days, so I decided to net my 19% profit and get away.
I am 100% in cash again right now. I like that when I am 100% in cash. My mind seems a lot clear when I don't have any position in hand.
S&P500 future is down 5 points by the time of this writing. Seems like the market will retest yesterday low which is the critical support 1085 when the market open tomorrow. There is no way we can predict the direction of the market, but we can read and observe the market. If we have a strong rebound at 1085, bull may have a chance to recuperate this short term uptrend. If 1085 is broken sharply, we may say hello to 1040 again soon.
Personally, I am not sure if 1085 will hold, but I think the worse scenario is we will have a retest of 1040 low and have a strong rebound. At that time we can take a look at the charts and technical indicators see if we can add up some long position.
Just a reminder, my view for the long term is still bearish, the rally from March, 2009 to April, 2010 is just another counter rally in a bear market.
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