Two reasons. #1 Usually before any major political speaks nowadays, its always been a great fade. Obama started speaking and you could see the weakness coming. #2 Look at the chart from the "ball site" below. It will get to the low/mid 600s, but not all at once. Bear markets usually unravel over 2-3 year periods. We are just through the first year.
Agree. 850 for the S&P500 is key. The fact that the rally could not get above that number, tells me we will now test the 721 or so area. I need a rest! Don't know about you, but have found these markets exhausting!
You may well be right. There is something like 3 Trillion on the sidelines. It took some back and forth action for the market to break down to 721, with the Vix still high, I think it may still fluctuate....but, who knows. Bear market rallies are supposed to be very sharp and sudden, so maybe we don't go down. At this point, I think the jury is still out. All I know, is that usually, a bottom is tested twice, unless it is a v bottom...and we got this in Feb.
The only exit price is a trailing stop. When it hit 837, I updated the trailing stop to a few points above. When the market turned down to 827 and started going back up trail stop was triggered. Now Im looking to re-short. Waiting for it to get to 842 again and see what it does. I figure it will turn back at some point and probably right before 842. Right now at 837 and change.