Today's action is great, we are seeing some of the finest chop in a long time. In my opinion this is distribution, the bigger funds are slowly getting rid of their positions. I think the decline, if we get it, will be short lived though. I like the mid 1320s as a good target to the downside. If selling is intense enough, we could see a move down to below 1310. I will consider swing longs below 1310 if the ES manages to sell that low. Its still early, we'll see how she goes...
A close above 1360 today on the ES, however, will make me think twice about getting excited for the short-side.
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Hello Verde ---
ReplyDeleteI haven't posted in a while, but just wanted to say that I agree with you about the distribution taking place. The stage is set for a drop to the 1310-1320 area before we continue higher. Markets are are overbought, uber-bulled, and a pullback here in the next few days makes sense. ADX on the daily is ready to change direction and the $NYMO and $NASI confirm from my perspective. It could be a slow grind to that area though and even think one more push to the 1370, last year high is a possibility before we turn. But until and as always, we trade what we see and not what we think...
I hope you're doing well,
Vis
Nice to see you again Vis, and I agree, will be interesting to see how it unfolds... Perhaps we see a mini-correction beginning now, but maybe we need to wait till April b4 getting what I expect will be a more significant correction. That being said, I expect this to be an up-year overall, perhaps 1440 and above b4 year end...
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