Alert

The SPY are in a downward channel beneath the 100 dma. Click the link to see the chart, http://http//bigcharts.marketwatch.com/quickchart/quickchart.asp?symb=spy&sid=0&o_symb=spy
They made a high of 157.52 in mid October, then hit 155 latter in the month, then 152 last week before dropping beneath the 200 dma. That is a series of lower highs. They went all the way down to 144 before returning to 152. Right now the SPY sit @ 146 in the downward channel above support @ 145. Also the stochastic is moving up as the volume is going down, that's a divergence. We will add to the short if SPY breaks under 144. If that downward channel is broken to the upside with any force we will have to go long in an attempt to catch the resulting short covering. That my be a little tricky as we will be covering and going long during the short covering. You can easily miss the short covering if you are not in in time, let alone covering and going long. I f that happens I will use the IVV to go long and just let my self get stoped out on the SPY.