Market Pulse Thursday
All indexes are on hold short signals
QQQQ-
We held our short position covering at 48.00 for a 60 cent profit, we then shorted the bounce at the 48.40 level and again watching the 48.25 to 48.40 resistance level. A break of the 48.00 level and we will add to our position, a break above 48.50 and we will cover our shorts.
SPX
We held our short position and added full position short at the 1347 break. We are watching the 1345 resistance area for a continuation move downward. The greatest amount of resistance is at that 1350 area, so that is the least amount of risk area for entering a new short. Remember to cover half at support adding to resistance till it doesn't work anymore
Dow
We held our short position and are watching the resistance area 12090.
Conclusion:
We are in hold short positions, watching for any reversals at the 48.30 QQQQ level, 1345 SPX and 12090 Dow areas. Watch those 60 min stochs at those levels for hints of whether we continue up or down. Those are the resistance areas which offer the least amount of risk for entering a new short if you have stops on the opposite side of the resistance area. Good luck.
Market Pulse - Wednesday
QQQQ
We got a gift yesterday with the rampo at the open yesterday giving us a opportunity to short the QQQQ with little risk, since 49.00 is our target and resistance. Given that we are oversold and still in a tradable long. We half of our short at support at the 48.50. 48.75 is again resistance and will add to or cover the rest with the bounce this morning.
SPX
We got a sell signal after the open on the SPX at the 1358 location and are still in the trade short at support, but with a half position at 1350. We will add to the short if this breaks the 1350 area. 1355 is now the resistance area and if we bounce this morning would be the area we will watch to cover.
Dow
We got a sell signal at the 12260 and are currently on a hold short signal so we will continue to hold and will watch the 12225 resistance area.
Conclusion
We are on short signals with the Dow and SPX and are watching the confirmation of the QQQQ. We will protect our profits at the prescribed resistance areas. Given the over soldness of the markets expect a bounce to the resistance areas first thing. Good Luck
