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The bulls are looking very tired as they run into my upside target zone (shorting area) with sell signals in place. If higher is needed, continue to build a short position and let things play out as they may need.
If lower, wait for support to break and short bounces at resistance levels. It really is that simple of a trading system.
It will NOT always be correct, but simply selling long positions as we head into resistance and building short positions when we see sell signals and sentiment moves from the extreme bearish to extreme bullish, we will be right more than we are wrong.
Futures are lower this morning, but approaching the hourly 50 DMA support at 4473 (/es) If that is taken out, we should see selling pick up with a short-term downside target at 4420/4400.
The SPX support is at 4481 and if taken out, sellers should step in and drive the price down to the 4410/4395.
If the bulls defend and take out yesterday’s highs, 4545/4585 would be the next pivots.
Be patient and if things just fall apart with 1/2 a position, so be it. I have had worse things happen to me trading. -Gary Dean
SPX Hourly Technicals
Stochastics: Overbought
Divergences: Bearish Divergences
Resistance Pivots: R1-4520 R2-4545 R3-4560
Support Pivots: S1-4481 S2-4431 S3-4395
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