18 Apr 2013

The SPX broke the 1540 support today but stayed just above it for the day.  The important thing to take from today is that a lower low is bearish and we would look for a lower high to take place for a corrective rally.  Before that rally takes place we have to look at a support that is the 75ma on the Daily chart at 1522 level.  This is also the small support resistance cluster made during the month of Feb.

Mid-Term Trend: Down
Short -Term Trend: Down

Therefore a short position would be held until we get an indication of a trend change from our Mid-term trend.

For anyone looking at short opportunity, I noticed that DE, and CAT looks to be at an inflection point and a turn down soon is possible.  These two companies are also a bell weather for the economy.  DD is need here before a trade is initialized so don't just jump into it head first.