Once SPX crossed 2650, I decided to start closing out my long positions.
Three out of four of which were profitable. I added Boeing (BA) this morning but I had to quickly bail on that one too (my only un-profitable positions).
On the SPX 5 min chart there was a topping pattern and Technology and the Nasdaq in general were already selling off hard and fast.
If you want to have a legitimate market bounce, you won’t do it with Technology selling off.
I am short this market at the moment, and I’m not sure how long that will last, but it does seem like the market wants to test the 200-day moving average again. Whether it will hold like it did the previous two times, remains a big mystry, but each retest, increases the odds that it will break. If that happens, I think you will see a decisive flush lower.
Below is my watch-list that I plan to use in the days ahead should the selling persist, and if the 200-day moving average breaks, there will be more opportunities that come along. A lot of these trade setups are starting to break down and make for some great shorting opportunities.
Here’s the short watch-list:
