SPDR S&P 500 (SPY)

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Market Pulse Tuesday


We are still on hold short signals in all indexes.


QQQQ-- we held short but covered half with the afternoon ramp at the 48.55 resistance area. We continue to watch the 49.00 area for a possible reversal or will add to our short with a break of the 48.50 support area.

SPX-- held our position today covering half our positions at the break above 1360 area. We will add to our short at the 1370 area again, if we break down there or with a break of the 1355 area. If the 1370 resistance area is broken on the upside we will probably go long, which is unlikely till the ABC down is completed.

Dow-- we held our short position watching the 12360 area again. A break above that resistance area and we would likely go long.


Conclusion:
We are waiting on the moving averages to catch up with the consolidation today. More weakness is expected till we get to the 1330-1339 SPX. We are not so sold here on the short side, and will pay close attention to the resistance areas at the 1370 SPX, 12360 on the Dow and 49.00 areas for entering more short or reversing to the long side (which seems unlikely).
We will also add to our shorts with a break of 48.50 QQQQ, 1355 SPX and 12200 on the Dow. Trade with momentum and the swing!
Good Luck





From Monday
Needless to say we are in hold short signals across the board, we sold half our long positions Friday and then sold the rest as we had a short signal, across the board as stated below


QQQQ we sold all and went short at 49.80 and we are currently are at 49.02 with a 78 cent gain where we covered half and will watch the 49.25 level. To possibly re-short.

SPX -we sold all and went short at the 1390 SPX we are currently on a hold short signal and held everything since we broke the lows. ABC down target is at 1339 so we will watch that area to the 61.8% area. Possible re-shorting area is the 1370 SPX on any strength.

INDU We we all in short at the 12500 and are currently holding short with 290 Dow points. 12350 would be the best area to short if we bounce here.

Conclusion: Hold Short in the weakest indexes: the Dow and SPX. Possibly re-short the QQQQ with a bounce at 49.25. The QQQQ is the strongest link and a move above 49.25 would give you a tradeable long and would probably negate any more weakness in the over all down move. At that time I will sell half of my SPX and Dow positions. ABC Down and 61.8% targets are right below at the 1330-1339. Watch for a reversal at those areas. Foot in mouth stuff.





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