Look For Confirmation
The bulls are out in full force calling this past week's explosion to the upside the start of a new trend, while the bears eagerly point out that meager volume undoubtedly makes the move nothing more than a "dead cat bounce" that should be shorted. What do I predict? I try not to make predictions, I wait for confirmation. The $SPX blew by it's first resistance point at 1280 and is now butting up against another one at 1300. It can either break 1300, consolidate or pullback towards 1280. If it does the former, I'll keep waiting for a pullback. If it does not break out, look to see if 1280 holds, as this will signal a short term bull market. If 1280 is violated, it's time to short, and short big. While I wait for the signal, I will be updating my watchlists with both long and short candidates. Stay tuned.
SPX Chart:
SPX Chart:
