I am issuing a BOT Re Short Signal right now in the sp500 at 1188. I am thinking part of this rally is cooked for now and we could resume down again at the minimum to the lower portion of the trading range.
I am unclear if this is ‘the’ one and only re short signal that will have us take out the August 9, 2011 lows, but I have to make the call right now based on what I am seeing.
One reason is that I do not like the way the QQQ is hesitating in the current range. It was supposed to initiate a 2B Buy signal right at the current resistance range but it is struggling badly. This has me concerned that it will take a trip back down to the bottom of the recent trading range again at a minimum.
Also notable is the horrible upside volume on the recent rally. A dramatic decline in volume on the upside.
We will have to see how this shakes out, but I am making the BOT re short signal right now on the chance we fail here…