Monday, August 8, 2011

Market Watch:SPX


We are going to short the SPX on a break below 1170. Take a look at the chart of the SPX above. Notice the double bottom in November at precisely 1170. Right now we are back at 1170.73 on the SPX. A break below this number could take us all the way down to 1050 before we find any prior support. So, on a break of 1170 we will short the SPX with 25 shares and a two dollar stop.

We will not go long on the SPX until a break of 1250.

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