Fork in the roadHit my $16 target (well 4 cents shy). I'm out waiting to see some direction for the short term. The 200 day MAs all failed to hold last week - no surprise, so the main thing I'm watching is to see if the markets can go back up and hit the 200s. It they hit again now, they will hold for weeks and markets will have a solid rally. A breach up through 1090 on the S&P would pretty much confirm this scenerio to me.
However, any further weakness over the next few days and I will go back to a fully short position. A breach of S&P 1065 would be a compelling reason to short.
This is a situation where it may be best to stay nimble and let the market decide which way to go. Yes, sure the intial part of the move will be missed, but this is a low risk way to capture the bulk of a large move in either direction.
Too many traders were bullish last week, and that was a reason to be bearish. Now that excess bullishness has been reduced. So I am leaning bullish short term on the markets, but again any more signs of weakness at these levels and I can only conclude that we are entering the second part of the crash.
SC