market bounced right off support as expected. however, S1, not being a target means that i expect any bounce to be fleeting. hard to say how far or long the bounce will last but my best guess is that it will start getting sold into by the end of the day today and will most likely turn down at or before that top horizontal resistance line on my chart. something like this (first chart is today’s from right after the open, 2nd chart is yesterday’s 60 min SPY. of course, every trader must have a plan B (or even plan C) and that would be to set stops on any existing shorts based on either their own technical levels (my preference) or if the SPY takes out that resistance level above by a decent margin. for now, i favor more downside in the markets as soon a this bounce runs it’s course as outlined above so i will be adding back onto to some of the shorts that i took profits on yesterday when the XLF and SPY hit those support areas as well as looking for any new entries.
