Thursday, April 23, 2009

Topping process...

As part of the topping process, the market continues to oscillate between 830-850 before diving towards sub-800...

SPY needs to open below 84.7 for a nice intraday sell off tomorrow. ES is currently down 4, I guess we need 2 or 3 more (842 or 841 should correspond to SPY 84.7) to trigger a sell off from the get go.




Meanwhile, most of the long term charts are perfectly in sync. Like OEX below, they all imply minimum 40% drop in the next 3-9 months. So I stay massively short till SPX is cut in half.

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