10 Reasons to be short the S&P 500 (and the Dow and Nasdaq)
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
also
10. Tomorrow is Monday
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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,
HighProTrading
Blog: www.highprotrading.com
Twitter: twitter.com/HighProTrading/
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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
also
10. Tomorrow is Monday
--------------------------------------------------------------------------------------------------------------------------------------------------------------
Join me on my blog:
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,
HighProTrading
Blog: www.highprotrading.com
Twitter: twitter.com/HighProTrading/
StockTwits: stocktwits.com/HighProTrading