As called 2 days ago the top around 1130 in SPX was a nice short and I still have a bit shorts left but took a lot profits. Again I called the bottom from rally 7-8th june perfect and we got a nice rally, but it went TOO fast up, and then a pullback MUST come. Now just because markets been falling 2 days in a row people think we crash and I dont think so. I think its a healthy pullback and my target for the pullback have always been 1090 on SPX. So IF we get around there (the MA20) on indexes I think these ones acts as strong support, and we also have a 50% fibonacci retracement at 1087 on SPX. So lots of support in this area and I dont think we will move below this, but then get another rally to higher highs. So I am a BUYER at this area, then all suckers who bought the top, bad for them..I knew this pullback would come and I am going to buy now when everyone thinks we crash and burn. I would like to see a little more downside, but ultimately scale into long positions. IF and only IF 1086-1090 gets taken out by heavy volume and we move past 1070 I take all my longs off the plate fast and move all cash, but I dont think we will move below 1070.
Hope you enjoy reading my blog - be ahead of the markets once again. Have a nice day
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