By Technical Analyst Colin Abrams
Recommendation: SELL SHORT A SLIGHT BOUNCE
Current Trend: Short-term sideways. Med-term up but overbought. Long-term up.
Strategy: It can still be shorted but ideally on a minor (one to two day) bounce.
(chart: daily)
Chart Setup: The S&P broke down and triggered both our aggressive and conservative short signals. A big drop on Thursday night saw it reach some initial downside targets. But I'm expecting ongoing downside here, to lines 1 and 2.
Strategy Details: Hold short if you still have part of the short position on. If not in, I can’t advise shorting after such a steep one day drop, the wait for a one or two day bounce to short on.
Target: Down to lines 1 and 2 at 2414-2409 respectively. In the interim, the price could bounce to as far as 2460. Look to short the bounce.
Stop-loss: A close above 2466. Then a breaking of its prior one-day high from 2420.
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