10 Reasons to be short the S&P 500 (and the Dow and Nasdaq)

FX:SPX500   S&P 500 Index
10 Reasons to be short the S&P 500 (and the Dow and Nasdaq):

1. Close below 34 EMA
2. Completed Head & Shoulders pattern
3. Close below the December high
4. "Falling off the roof pattern" - The market is said to climb up the ladder, the ladder is
then removed and the market falls down much more quickly then it went up. The advance
took about 4 1/2 months. The decline should take about 1-2 months
5. RSI divergence (on the weekly chart)
6. Small specs have the largest net long position since last
September and the commercials have the largest net short
position (data taken from Finviz.com)
7. Majority of traders bullish (subjective opinion from
reading various blogs and posts)
8. Market declines on good news (strong jobs report on
Friday and the market declines sharply)
9. Dow theory sell signal (transports didn't make new highs)
and other sectors look like they have topping chart patterns
10. Tomorrow is Monday


Join me on my blog:
http://www.highprotrading.com - A diary style blog focused on risk management, emotional aspects of trading and best practices where I follow a live portfolio, list all trades, and track its performance through time.

Thank you,
Blog: http://www.highprotrading.com
Twitter: https://twitter.com/HighProTrading/
StockTwits: http://stocktwits.com/HighProTrading
I have heard that "the market takes stairs up, but elevator down".
I am too convinced that the bullish trend is broken and we may see a correction now. Your analysis is also convincing.
+1 Reply
Yeah, you can also say that the bulls take the stairs but the bears throw themselves out the window. Thanks but don't forget no matter how convincing an analysis is, always execute your trading plan and respect your stops.
+1 Reply
jimmy_hongkong HighProTrading
Hi HighProTrading, may I know what makes you think that the index can fall to 1900/1820 level? Why don't you think it will stop at 2020 level, i.e. the bottom of the uptrend lines (diagram above posted by jangseohee). Thank you.
HighProTrading jimmy_hongkong
I was thinking about covering some of my positions or hedging at the 2040 level but I didn't mainly because I am trying to be a swing/position trader. If the market went down instead of up then I would have had to reenter my short positions and follow the market closely. I have a full-time job and I don't have time to follow all the meanders of the market so I decided to hold.
jangseohee Martzee
it will take quite sometime for the Megaphone to take effect IF it is really the megaphone xP
2 months later as of todate,
i see want to see Megaphone at around 1750, call me permabear if you like :-)
2 months ago, i am not convinced at the break out in megaphone
+1 Reply
G13Man jangseohee
nice view , thanks for a new percpective
+1 Reply
thank you
I love the american indicies, every time it drops, the fed say, dont worry we wont raise rate too soon xDDD getting to a point where it is a joke now.
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out