Below is the $Comp daily chart sporting said two bar pattern with a new high and higher volume and all:
My plan is to short the $NQ_F on a $comp break of 2965. Ideally I'd like to see a hard break of that level and then a hard snap back test I can short @ 2965.95. Since I'm writing this chances are it won't happen like that so I'll probably wind up drawing fibs on smaller time frames and shorting pops into them. I have full positions in $CZZ and $DDS. I raised my stop on $DDS but kept it loose on $CZZ. The rest I trade futures with.
If you've been following me here or on twitter you know I've been bullish. Today I was neutral as I didn't tweet a single solitary Larry Fink tweet the entire trading day. After looking @ the chart leaders I'm firmly convinced we start March off to the down side. The fundamentals are better so I'm only looking for a quick 5 to 7% correction and it could happen fast. Like 2 days fast.
In case your like me and feel more comfortable with the liquidity in the $ES_F then my same break and short the test trade will work with 1364 on the $SPX. Wait for a 1364 break and short a upside test of 1364.37. Looking @ the futures it's early, but it looks like we might gap down below that level. If that's the case shorting the gap fill up to that level looks like a plan.
All in all traders like I said above the fundamentals are looking better so I'm not looking for anything too crazy. The thing is, once the snowball starts rolling down hill it's no telling if it'll hit a tree and break or turn into an avalanche and demolish the whole forest! No doubt the media will scream the sky is falling so wait for a genuine reversal pattern and for the market to start going up before you get back in.
But before that, let's snap these levels and confirm we're going down.
Until next time happy hunting traders!