Given Friday’s futures levitation and subsequent fizzle, seemingly, all it took were a few more trade jitters in the wake of technical failure for the market to give way.  We’ve learned that much of the recent manic move higher by the sectors that were working, that we discussed in our webinar, may have been due to epic short squeezing.  Now, there’s, only a little support between here and our 3rd level down:

Overall, most of our names cooperated to an extent with our directional leans but naturally with the market now getting swamped, most bearish names have dropped off a bit or more.  Bullish names that were working, have definitely been hampered by Friday’s and today’s developments but are shockingly holding their own to an extent.  Given that we’re writing up another issue tomorrow, and not really being able call for official triggers WITH market winds at our back until now, those that became involved might consider these thoughts:  If your bulls haven’t hurt you all that much, but your bears have worked, it may be time to take profits, reduce risk , roll and positions and see what the future brings.  This type of selloff can trigger more panic selling and the VIX has responded finally, something we noted wasn’t yet happening in our webinar.

We’ll update further ASAP.  Thanks!  Wayne

We’re leaving our prior update below for your review:

So far, it’s been another week of muted movement.  We believed the markets were due to try to lift a little at the time of our webinar but did allow for a “failure” scenario if the SPX couldn’t rise back above our purple resistance line that helps to form the channel the SPX has been trading in for some time.  That scenario looked to be playing out with yesterday’s weakness.  However, a lower low hasn’t been registered yet and the Gang is elevating the futures markets quite nicely this morning.  So…once again, we’re hung up in markets that seem to be going nowhere.  Today’s open is set to take us to near Tuesday’s at which time and price levels we made our selection.  We have to hang in there and see what further develops which is frustrating because our bull side was largely working on Wednesday when the markets were positive and the bear side was largely working yesterday in a down market.  We seemed to have latched onto good names on both sides but we need sustained movement as opposed to this back and forth stuff.  Hopefully today and early next week will deliver that.

Some may have decided to jump into some names although the market has been mixed.  We’ll try to get a summary out depending on what happens today.  All in all, good signals, not enough time spent moving in one direction…yet…

Wayne