This 60 minute SPY chart lists some of the key support levels where a reaction (bounce or pause) is likely to occur. I’ve even added a likely scenario but keep in mind that gaming all the squiggles on the intraday charts can be very difficult at times, especially in a low volume market such as we’ve had for most of 2013, where the institutional players can move prices at will to run stops and shake out the weak hands.
My current focus is based largely off the daily & weekly charts, as covered in the recent S&P 500 Index & top holdings videos and as such, I am employing a more passive swing trading strategy on my equity short trades, allowing for wide stops and targeting the mid to final targets at this time (although that may change as/if the charts do).
As usual, my personal preference is to trade individual stocks vs. the broad markets (via futures or tracking etf’s) but I always use the broad markets as a guide to help manage entries and exits on those positions. I continue maintain a mostly short equities, long miners portfolio but have been gradually reducing exposure to the mining sector over the last few sessions and will likely have reduced that exposure to a relative modest amount by the end of the week. Although the sector still looks bullish longer-term, many of those trades have large gains in very short order and have reached or are close to some of their prices targets. I’m also not crazy about the fact about all the bullish “bottom-calling” buzz out there right now. Crowded trades can always become more crowded but the mining stocks are getting just a bit to popular for my comfort level right now.