Room on the Short Side
The 1435 region of the S&P 500 has a long history as both support and resistance. On the first chart below we see other times when it has hit that level and turned back, as indicated by the ellipses. Monday seemed to be a repeat performance. The early rally quickly failed in the same vicinity.
The Arms Index remains quite overbought, especially on the 10-day average, which has a slightly longer implication. Also, we are still seeing a high level of complacency as reflected by the low volume and the low Volatility Index (VIX) reading. A further slide appears likely. There could be room in here for traders to play the short side....254 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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