Just as we (well, NFTRH) did with the GDX gold stock ETF over the summer, when we gauged resistances 1, 2 & 3 on the Ukraine hype b/s (GDX stopped at #3), we now have established resistances 1, 2 & 3 on the S&P 500, DOW and NDX on the rebound rally, which itself we had anticipated.
SPY hit a trend line today, which I have a feeling will not hold as ultimate resistance. So understanding that in my nature I have a sort of chronic mental problem with being a strong short (this is me the faulty trader speaking, not me the top notch* macro market manager), I took the small step of shorting SPY today. No leverage, just a short. This is against some still held longs but the last 2 weeks have been pretty good and I want to seek out balance again.
This chart of SPY shows what could be the ultimate resistance level beginning at 196, but the indexes (ref. SOX post earlier) have started hitting some bounce targets so I thought it was worth a shot to begin creeping shorter the stock market.
* Sorry, but that’s just how I feel about my own work. It continually adjusts the faulty trader and keeps his head on straight.
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