The short term isn't too predictable, because of the light volume, and because the short sellers picked the wrong time of year to get short, and now they remain trapped - as I showed you yesterday - and you can see them capitulating on this mornings jobs number, but I expect this top to look just like the previous two...
1. Pump
2. Take profits
3. Dump
Yesterday we saw the $VIX beaten back down below the 15 level, even on more bad news reports coming out of China. I believe my resistance line on the 10 min chart was correct, based on that news report, and the momentary $VIX breakout, but it couldn't even pullback more than a few points, before the $VIX was immediately hammered back below 15. Manipulation
That becomes the number to watch ($VIX 15), and you could probably add to your shorts over the next week or 2, and set a $VIX alert on your phone. I like the mobile Webull App, and it's Free. I"d also set an alert for $SPX 3100 level, because that's support, as we found out at yesterdays open.
We're in profit taking mode, as you can see on the chart, and that usually takes a couple weeks.
If we see a correction before the Christmas break, I'm still looking for support at the 50 day ma on the NASDAQ, and maybe just above 3000 on the $SPX. That would set up for a nice little Santa Rally, going into the end of the year.
I'll try to pin down a date as things progress, but like I said a couple days ago, "don't hold your breath". Enjoy the holidays!
GL Traders,
AA
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