Market Still in Sell Mode

Rallies should be sold here. The S&P 1160 area we saw today is likely to be tested and broken, and most likely will be tested soon. There might be vicious snapbacks along the way (like in most downtrends/corrections), but they shouldn't be more than 30-40 points or last longer 2-2.5 days, especially given that we are still relatively close to the highs. It is not time to buy dips right now...MAYBE around 1235-1240 but not yet...there is still air below these levels. Pretty much every major market around the world has sold off much more than the US so far...reminds me of last April when people came up with reasons why the US wouldn't fall and kept buying the dips....just as we were entering the heart of the correction. Tomorrow should be interesting...I'm pretty sure we will gap down, just not sure if it will be another down 25-30 day, or if we consolidate at the 1275 area (where the market spent a lot of time consolidating today) before starting a small sucker rally. But I will be shocked if we see a gap up in the morning. 50% short at these levels...will cover around 1240-1250 and start preparing for a snapback rally. Will go 100% short in the 1295-1310 area.

Sorry, I might also cover around 1275 if we spend a while there in the morning and there is no selling pressure. But a large gap down will take away that scenario.

Rallies should be sold here. The S&P 1160 area we saw today is likely to be tested and broken, and most likely will be tested soon. There might be vicious snapbacks along the way (like in most downtrends/corrections), but they shouldn't be more than 30-40 points or last longer 2-2.5 days, especially given that we are still relatively close to the highs. It is not time to buy dips right now...MAYBE around 1235-1240 but not yet...there is still air below these levels.

Pretty much every major market around the world has sold off much more than the US so far...reminds me of last April when people came up with reasons why the US wouldn't fall and kept buying the dips....just as we were entering the heart of the correction.

Tomorrow should be interesting...I'm pretty sure we will gap down, just not sure if it will be another down 25-30 day, or if we consolidate at the 1275 area (where the market spent a lot of time consolidating today) before starting a small sucker rally. But I will be shocked if we see a gap up in the morning.

50% short at these levels...will cover around 1240-1250 and start preparing for a snapback rally. Will go 100% short in the 1295-1310 area.

nice analysis, keep up posted with your thoughts.

Rallies should be sold here. The S&P 1160 area we saw today is likely to be tested and broken, and most likely will be tested soon. There might be vicious snapbacks along the way (like in most downtrends/corrections), but they shouldn't be more than 30-40 points or last longer 2-2.5 days, especially given that we are still relatively close to the highs. It is not time to buy dips right now...MAYBE around 1235-1240 but not yet...there is still air below these levels.

Pretty much every major market around the world has sold off much more than the US so far...reminds me of last April when people came up with reasons why the US wouldn't fall and kept buying the dips....just as we were entering the heart of the correction.

Tomorrow should be interesting...I'm pretty sure we will gap down, just not sure if it will be another down 25-30 day, or if we consolidate at the 1275 area (where the market spent a lot of time consolidating today) before starting a small sucker rally. But I will be shocked if we see a gap up in the morning.

50% short at these levels...will cover around 1240-1250 and start preparing for a snapback rally. Will go 100% short in the 1295-1310 area.

nice analysis, keep up posted with your thoughts.

We got the small gap down and I'm not seeing much selling pressure. Covering here in the 1273-75 area. I definitely don't think the lows are in for this correction, but I see signs the bulls are fighting to defend the consolidating area from yesterday as we speak. We might get a bounce right now from the 1273-1275 area.

Rallies should be sold here. The S&P 1160 area we saw today is likely to be tested and broken, and most likely will be tested soon. There might be vicious snapbacks along the way (like in most downtrends/corrections), but they shouldn't be more than 30-40 points or last longer 2-2.5 days, especially given that we are still relatively close to the highs. It is not time to buy dips right now...MAYBE around 1235-1240 but not yet...there is still air below these levels.

Pretty much every major market around the world has sold off much more than the US so far...reminds me of last April when people came up with reasons why the US wouldn't fall and kept buying the dips....just as we were entering the heart of the correction.

Tomorrow should be interesting...I'm pretty sure we will gap down, just not sure if it will be another down 25-30 day, or if we consolidate at the 1275 area (where the market spent a lot of time consolidating today) before starting a small sucker rally. But I will be shocked if we see a gap up in the morning.

50% short at these levels...will cover around 1240-1250 and start preparing for a snapback rally. Will go 100% short in the 1295-1310 area.

nice analysis, keep up posted with your thoughts.

We got the small gap down and I'm not seeing much selling pressure. Covering here in the 1273-75 area. I definitely don't think the lows are in for this correction, but I see signs the bulls are fighting to defend the consolidating area from yesterday as we speak. We might get a bounce right now from the 1273-1275 area.

Any bounce should be limited to a couple of days and 30 points at most if we do rally from the 1275 area. We should be back below 1260 in a week at the latest. But I think the selling for today and maybe tomorrow might be done at 1273-1275, the consolidation area mentioned yesterday.

Edited by Macro Speculator, 16 March 2011 - 08:55 AM.