The bottom line, the short-term trend remains down and I added small short position intraday (not at open as I’ve explained in my forum – the 5 min open range held well so short at open would be very dangerous). Basically, I cannot deny that 3 reversal like bars in a row on the SPY daily chart below may mean a bottom of some kind but I don’t think the rebound, if any, could go too far. I’ll present some evidences in tonight’s report.
As for tomorrow, probably we’ll see gap up open because it’s rare for the market to gap down 6 days in a row. Also SPY down 5 days in a row, buy at today’s close, sell at the very first green day close which most likely is tomorrow, you’ll have 87% chances since year 2000.
