Keep a keen eye at this level and use it to sell the rally!
While we did get another sell signal today, this time from the MACD and the market also broke below the up trend line on the chart, we could have a small reflex rally here.
The reflex rally will come only because we are grossly oversold on an Ultra Short Term basis and also with the breaking of the trend line today (light blue arrow) there is a high probability that we will rally up to the line and get turned away.
We remain in the sell strength mode so any rally that might develop use it wisely to purchase puts.
I also am starting to get quite concerned over the fact that we have had a decent sell off over the last 2 days and yet traders are still buying calls like crazy. This is VERY BEARISH!
The reflex rally will come only because we are grossly oversold on an Ultra Short Term basis and also with the breaking of the trend line today (light blue arrow) there is a high probability that we will rally up to the line and get turned away.
We remain in the sell strength mode so any rally that might develop use it wisely to purchase puts.
I also am starting to get quite concerned over the fact that we have had a decent sell off over the last 2 days and yet traders are still buying calls like crazy. This is VERY BEARISH!
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