Still a pretty gutsy call as last night may have just been the market catching its breath, but it’s clearly retested its highs (dow) on much lower volume and that is a clear sell signal.
S&P has kinda flip flopped back to resistance and its hard to see a rally been spawned from this market action.
I believe that this will probably be your last chance to short at this level. Personally I believe in the last 2 days the Open market committee has been purchasing a bit of stock to make people feel comfortable with the new Fed chairman and there is evidence of this in the charts. If the committee wanted to support the market they have to buy stock not futures, we all know futures tend to get the market open spot on, however on Monday night, the difference between the open on the market and futures was 20pts, showing someone brought up big right from the bell and the rally in the last 30min of last night was suspicious to.
Technically the market should not have enough strength to take out last weeks highs and if my theory is correct we should see Monday’s gains rapidly deteriorate as the committee can not support the market every night
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