It doesn’t get much worse than what we saw on the Stock Market today. Do we really care what the news is? Doesn’t really matter because we can see what is happening by the minute looking at prices on chart. So what do we do tomorrow. Can you hear me sigh?
If we are going to live and die by the daily chart, tomorrow we have to bailout of the S&P 500 or C-fund unless price re-capture $1750. The Small Cap is safe by one dollar but I will bailout tomorrow if it doesn’t hold above $947. Bonds are just ticking up a little everyday and I have to say that is better than losing money. Here is what kills me here. I know the second that I bailout of the market using the daily charts, that I will be exiting at the bottom and prices will reverse. If I use the monthly chart, I run the risk of further downward prices, but I also have more time for prices to recover. I’m going to think it over night tonight and I will make my decision in the morning whether II ‘m going to follow daily or monthly signals. Right now, I’m on the fence.
It is easy to see that price closed below the intermediate uptrend line which fires the last warning. Tomorrow if price does not re-capture $1750 by 11:30am, bailing is the call. If I decide to follow the monthly guidance, I will ignore all the information above and wait till February 28th before I make a decision.
Price is currently safe on the Small Cap by $1. If price falls below $947 by 11:30am tomorrow, bailing is the call. Once again, I might decide to use the monthly.
So far the call on Bonds has been the right call. I hope you followed the buy signal for bonds either the daily or monthly.
Conclusion: I feel like I’m being setup and as soon as I bailout, prices will reverse to the upside. This is the hardest time in the Stock Market and that is to follow the charts even though your mind is screaming no. We are extremely overbought at the moment. It’s time to reverse.
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