What next?
The 6J has broken out (minor) to the downside and we are at the go-no go area. Aggressive traders will sell this area. We are being very cautious due to the recent false breaks. We choose to sit this out until we see a better break. What does that look like? If we break 9725 on the down side we will nibble (very small) to the downside. If we break 9920 on the upside we will buy all pullbacks. It's interesting to note that while the S&P is rallying the 6J is doing nothing. If the 6J breaks to the downside we will see much higher in the indices. If we see a nice break to the upside then we could sell off for a while in the indices. With this pull back we are in the middle of the junk and it's a fight for control...try not to get caught in the fight. Right or wrong the big boys have deeper pockets.
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