Broad selloff in equities today on likely deadlock in Italian general election with Berlusconi gaining some ground in the instant polls. The writing was on the walls for a selloff after the market gave up huge morning gains. Hope you ended the day being on the right side of the trade :)
UUP broke out over the range i gave in the last post. It looks like it want to go higher which may mean more downside pressure on in US equities. Expect high volatility next few days and watch out for huge short covering rally if the news from Italy turns out to be better than expected. As I had advised in the last post, its better to watch the action from the sidelines from now and let the market settle down. If you want to play in this market scalping is the way to go. Stay nimble and take profits quickly. There is a gap fill at SPY 147 area, won't be surprised if that gets filled sometime this week.
I just have a few short positions right now and am long VXX from Thursday. Tried a long trade in SFLY this morning expecting a breakout but was stopped out for a small loss.
Here are some charts and levels to watch --
Resistance - 149.60, 150.45, 151.40,152.60, 153.25, 154.65, 155.20
Support - 148.42, 147.25, 146.30, 146, 145.60, 144.50, 144, 143.06
Long - ARNA, MHP 1/2, VXX
Short - ANGI, SPWR, GWRE, GOOG
Closed - MHP 1/2 at 46.50 (+2 gains)
Stopped out on SFLY long for 0.60 loss.