keep in mind that although i’ve been harping a hit-n-run trading style and keeping things light for weeks now, the market won’t chop around aimlessly forever. as mentioned earlier, i am starting to expand the expected targets on many of my short positions and i have lowered some of my buy-to-cover limit orders. although the near-term technical picture remains somewhat opaque, the fundamental picture continues to deteriorate at an accelerating rate. while the next substantial move in the market could go either way, i am more apt to quickly get aggressive (fully invested+) on the short-side than i would be on the long-side. my longer-term bearish bias is as much based on fundamentals as it is the technicals. here’s the updated SPY weekly chart, with some downside targets, should the selling start to accelerate soon. i have also included a 4 hour SPY chart with some intermediate targets as well as a key uptrend line to keep an eye on (we just bounce off that level a few minutes ago).
