Wednesday, July 6, 2011

SPX July 5 Review

Price closed above daily upper BB for 3 consecutive days. This is only the 3rd time it happened since the rally began in March of 2009. Last 2 times SPX sold off between 2.5 and 4% immediately after. I am not calling for a huge sell-off; 2% would suffice*. 50 day sma is only 1.6% below current price. To aid my theory, today was an inside day with pretty small range. Lets see what happens...

* Shorts have to be quick, decisive, and with tight stops here, uptrend is intact.

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