The S&P 500 Index (SPX – 1,115.01), tacking on 12.4 points, or 1.1%. and it closed above 200-day moving average for the first time since late June.
I didn't short the market today because the technical indicators were not at extreme overbought level and the S&P500 index didn't have a spike to 1113-1117 area and retract. It may retract from here(1115.01) tomorrow or it may extend to 1131-1145 area.
Next resistance will be 1131 which is the June high. Personally I prefer 1145-1150 resistance. If market can go that far in next few days, the risk reward ratio definitely will favor the short side, and I will be the first one to short this market provided all the indicators(5 minutes, 15 minutes, 60 minutes) are at extreme overbought levels.
All in all, bulls will have a hard time to surpass 1145-1150, even if it can take out 1131 which I believe it will have difficulty at this moment.
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