Thursday, December 20, 2012

Plan B

Futures are own ~ 2% across the board as we speak. SPX is hanging around 1418 level which is very strong area of support. If we open tomorrow morning in this range, it will be just below 20SMA and just over 50SMA. Look for a bounce here. If we confirm below 50SMA, we may be in for big trouble going into the weekend. Remember the #2 scenario from my SPY update post last week? That may start looking like a strong  possibility if we don't hold up tomorrow. If we do selloff tomorrow, I highly recommend closing long positions and taking losses. Don't get too emotional about it. Remember, all losses start small, so take it while they are small.

Good luck!!

No comments:

Post a Comment