Tuesday, April 16, 2013

Nice oversold bounce - comments

As you know the market has a big sell off yesterday, today however it is up nicely, the S&P 500 is up nearly 20 points.  However as I pointed out in the newsletter, the market was very oversold yesterday and closed at support, as you can see via this daily SPY chart, it bounced off the uptrend line. 


This is why unless you were already short coming into yesterday or you shorted yesterday morning, we advised our members to NOT CHASE shorts late in the day or at the close yesterday because the market was so oversold and at support - today you can see why.  


I still favor this market bounce forming a lower high and then having another decline to take out yesterday's lows, however now you can look to establish much more objective shorts at higher prices.  

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