I’ve been saying a break of 819.53 will result in a test of 893.06. SPX settled at 893.04 today. So that is below the next level. This tells me there will be a test into the 870s.

This is where we are going –> (877.52, 872.81), 865.3, (858.73, 852.06), 841.5 **(cluster), outlier

Clusters usually get broken either up or down, and after that break the next cluster is usually tested or the outlier gets hit on extreme volatility/movement/intraday wildness.

Other than this, from what I can see the potential for the market trend to reverse here is high.

I’m long FAZ. I did sell some for a 6% gain, but I will look to buy it back tomorrow. I was net short in the index funds, then rolled over that long hedge to the short side. Then at the close I rebalanced equally NDX, RUT, SPX. I twittered all this during the day for those that care. I am now heavily short for the ride to 870′s SPX and will look to add to that with my small accounts tomorrow.

I did sell all my UNG today for 5-7% loss. Very annoying – I bought wrong.

Two of my favorite shorts over the weekend that I found were CEC and BBY. I didn’t take a position in either.

Thanks for reading

Want to know when I post again? Subscribe to the StockRake feed: .