Selling strength? Yes, that’s what you do in raging bear markets – buy when no one is allowed to, and sell the short term rips. In this morning’s Early Look, I wasn’t making a call on the next bull market – I was making one that A) this isn’t a Depression and B) oversold bear market bottoming processes can be traded.
Below I have outlined what I think is turning into a trading range that is starting to assert itself. The shaded green zone is the “BUY for a Trade” zone (or the no fly zone for short sellers), while the dotted red line at SPX 713 is what we call the “Shark Line” (the line that matters from an immediate term price momentum perspective – if we close above it, the shorts get eaten all the way up to 770… if we close below it, whatever bulls are left will continue to get frustrated).
Keep moving out there,