Market is still in the down trend.Yesterday we had a close below the 1341 suport area. Looking at the negative movement in the market and negative breadth in this market, S&P may check the 1290 level before making any reverse move. If this happens, it will take couple of months for market to recover. Recovery is not a overnight process. It needs enough time to attract the buyers and create a strong base before market rallies again.
That being said, I still expect little bounces in this market and then create a trading range. After we have sufficient base in S&P, we will see accumulation phase being prepared and then we should see major rally in the market.
In the process, we may hit by some bad economical news and market may go down again but I would imagine that this is not a good time to think about long positions.
I am only intereted in shorting positions until I see some based being formed in the market......
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