So the market tested the TA today (1247) as I was expecting yesterday and was not able to trade over it. Given the fact that I was expecting a corrective bounce, the waves look like they are not done yet. So we might see some more upside, perhaps even test the 200 day MA again before going down to 1200. The bottom line is that the short term trend is confirmed negative and I don't think the low is in yet so it's best to be patient. I sold my longs today at the open and was very tempted to short but I am staying in cash instead until I see a tradable extreme. The Italian problem is lingering in the background and can be used as an excuse for a sell off anytime. In addition, if there is a conflict in Iran we could see oil skyrocket and stocks tumble.. better to be safe.
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