although we didn’t get a red close on the $SPX, the index did manage to fade over half of today’s earlier gains, closing well off it’s highs. as prices failed to make a new high today, the previously posted monthly pattern remains intact. in hindsight, taking into consideration the recent case that i made for a top in AAPL, i probably should have focused on the QQQ/NDX in my “early month sell-off” pattern, as i continue to believe that the $NDX is at the greatest risk of a sell-off from current levels. either way, one can’t read too much into today’s price action. based on the history of this pattern, if it is to play out this month then one would expect the selling to rapidly accelerate going forward.
i also realize that i am letting my bearish bias effect the trades posted on the site lately as the ratio of long vs. short trade ideas is by far at the lowest level since the Right Side Of The Chart was officially launched at the beginning of the year. therefore, i have compiled a list of attractive looking long setups, some recently triggered, some getting close, which I might post soon. however, i would like see at least one more day of market action before adding or deleting any more trade ideas. i typically don’t put a lot of stock into company specific events like the expected release of the iphone 5 tomorrow but with the chart and recent price action on AAPL looking bearish, i am curious to see how the stock reacts over the next couple of days before opening, closing, or adding to any positions. as i’ve said in the past regarding the market: Live By Apple, Die By Apple. i’m very curious to see if the news follows the charts this time around, as it so often does.