June 15, 2009

Sell signal

Both SPY and XLF have sell signal generated today.  In the weekend review I wrote  “I do not believe market has the strength to break above the multi resistance level without any consolidation.  also Monday, 6/15,  is an important time level that could lead to a big reversal.”   We indeed see a sharp selloff today and it forms a MDD. 

This is the beginning of a new down leg, so build the midterm short positions slowly.  At the early stage, market can be very choopy.  

 

A little more charts are added to the trading blog for subscribers.

 

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