Covering shorts. I covered up my index shorts with the big up move this morning. I thought there was a chance for higher highs into the close. I was wrong. What could’ve been a fantastic back to back gain of > 6% in the indexes backed down to about 2.5%ish.

The market took a dump around 2 and didn’t stop. Today we had exact low closes on all indexes. The Dow came within 2 points of its 200dma, while the SPX and COMPX broke below and away cleanly. Very bad signs there, but there is support right here due to the February 2007 correction. However, the NDX sits 16 points higher than its 200dma. If it gets there tomorrow morning, then my advice would be to cover up, wait for a dead cat bounce and re-short. Thats my plan from here.

Possible positive divergences forming in RSI across the big Indexes and I would only say that is short term positive. Intermediate and longer term stuff is down.

Thanks for reading

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