trend is relative to time frame. Your downtrend is based on 6 weeks. As of right now this is still a retrace in a bull market. Start making lower lows on a longer timeframe and then you have a real downtrend. This setting up for a run to 1340 on cash regardless of what you think the trend is short term
I agree trend is very much relative to time frame... if you move out to a weekly or monthly chart (positions traders) the main trend is LONG and what has happened over the last 2-3 weeks is not enough to change the overall long direction but 2 weeks is enough time to set up a swing trade and ride a 50+ point pullback on a monthly or weekly chart or a Trend on a daily chart. Trying to hold a swing trade to the July 2010 low of 1002.50 would be insane when you have a better chance of test 1400 to 1500 year end 2011 because the monthly chart shows 1500 as the key resistance and the main trend both weekly/monthly is currently Long['/U].
The volume yesterday look like exhaustion. Perhaps this may mark the low of the correction. Fed meeting next week, end of quarter. I would not short this market. I'm going long.
Exited my 54 long at 68.5. Forgot to post it sooner because I had some bathroom issues but they are resolved now
Good to see I am not the only one who could use the bathroom during the trading day. Good trade. I was able to at least post my trade before it hit my first target and 6 days before exiting close to my second target. 6 days before exiting would be a very long bathroom break. Posting the trade after exit I have not done that and have not seen anyone else do it either but since your a forum veteran I can trust you.