Markets did go up yesterday as expected which was the 1st day in a month , counter trend rally from the Friday drop and I expected a move to the upside early this week. Here we are and we got it, what I didnt expect was such a BIG move to the upside , where I thought we would hold us under the last SPX top. Well - that does not change my view really - cause if we are following the April top , we should get a nasty decline again today (Wednesday) and it will only get worse with the Flash crash II comming up next week.
All in all - expecting a good reversal in markets today and red close - but the mechanical signals DID give me a BUY signal, with the move higher above 1290 SPX. So until then the short trend remains up and we wont go lower until we breakdown below 1290, but that could happend today or very near term imho if we get the reversal I am looking for. But until weakness shows up, you better hold your longs until you see the weakness in markets , otherwise you will be stopped out fast.
What I have learned is to follow the short term trend and not fight it - well it may give you few false signals as it has been choppy giving buy and sell alerts lately, but better go with the trend cause in the end , we should go down or up in a bigger trend. This CHOPPY up and DOWN fast reminds me just of a topping formation and I think we will head way down soon to 1250's and lower.
Have a nic day
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