The major indexes, the Dow, S&P 500, Nasdaq and Russell 2000, have experienced two failed rallies in the last five trading days. While the market is still technically bullish, I don't know when I have seen price action that produced topping tails as attractive as these.
I added to my short position this morning and I remain confident in the bearish view looking forward.
To maintain the bearish view:
1) Today's high on the ES (M June 2013 contract) of 1672.75 needs to hold.
2) The ES (M June 2013) should not see a daily close above 1660-1661.
While I am bearish in the immediate-term, I am not expecting a huge correction.
Support levels I am watching on the ES (M June 2013 Contract) are:
1625-1626, 1607-1608.
If sellers push price further down from there, for example through 1605, the ES could sell down into the 1580s pretty quick. Furthest downside target I can anticipate is in the 1555-1565 price range. Too early to talk about that though. I'll wait for sellers to support my bearish view this week.
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