Closing comments

Well, we can safely say that the short term trend has turned down. Breadth was pretty bad today and various internals turned down. The McClellan osc crossed zero yesterday (see previous post).

How long is it going to last? Every turn down since March has been bought, and bought aggressively. Many Elliot Wavers I read are giving the recent turn a good possibility of being the turn starting P3 down. Fundamentally, this market is ridiculously overvalued imo, and radically overbought technically... so I like being short... but being short has not paid for months (even on very short term time frames). Still, I have a small short position on in various markets (its all one trade, remember).

We will just see what develops. I am keeping the 1987 analog in my mind though... and that says this swoon will be bought.... and bought all the way to test the highs. So I plan on staying nimble. SPX 1040 is a huge level and is being watched by many market participants. Also, watch the dollar. It is the dictator.