Markets still grinding higher on very low volume and today we have option expiration day. Usually the pattern I have seen before is that they are holding markets up until option expiration and then they can let the markets sell off after. But again the short term trend is still up and we are near 1350 as mentioned some days ago, do NOT try to be a hero and pick the top - wait for the CONFIRMATION that we are heading down. Actually SPX overshooted a little bit the upper trendline but with very low volume ?? breakout ..... NO way..... a breakout is with bigger volume and this is not a breakout of the upper trendline. What I think is that its an overshoot to make all the bears cover and stop out. They are really smart those guys cause they know the stops which will get taken out. Thats the same in the bottom - when markets were at 1040 , they did get us below the support for 1 or 2 days to let the bulls stop out - thats what they do.
What I find interesting tooday is the NYA chart. Today we touched the upper trendline and this pattern is usually very very bearish pattern. I still believe a sell off to come , maybe today and I think we will hear a lot of US debt ceiling and potential of deffault cause of the debt.
But again the trend is up and play it on that site , but with MINOR positions now. The levels to watch today and get short SPX is 1327-1330 level. If we breakdown of here , that is your SHORT ENTRY signal. Watch it closely..until then...trend is....UP
Have a nice day
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