Quick update on my short call of a few days ago.Obviously,I was a little early but I still haven't folded. All my arguments are still valid. The Dow did break intraday above its 200-day Moving Average on 5/2 but then ended up forming a bearish shooting star candlestick formation. After that, it stayed just below the falling 200-day MA.
Today was a good start if this market is going to break down from here as I expect it to but it was hardly sufficient. Should the DJIA not follow through on the downside and end up blowing past its 200-day MA (now sitting at 13,034) and its 5/2 high (13,132) then I'll give up on that short trade. The market has shown a lot of strength lately and some serious selling fireworks of the type we witnessed today must materialize in the next few days to change that.
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