This market still has some life in it. Even though I am declaring the bull market off the July/Aug lows over, I still am not convinced the market wants to start a solid downtrend yet. Until there are more distribution days on the indexes, it is still too early to operate on the short side. The greatest traders never forced trades when they were not certain about the market trend. Right now we are at that inflection point. We have to wait and see how the market responds to all of this wild and crazy action before I will feel comfy operating on the short side.
If this were a bear market, this is yet another chart I would love to be short. If you take a look at all the charts I have posted the past two weeks, in here, I think you will see the short side is doing well already. So you can imagine the power of these patterns in an all-out bear market.
XOM
