S&P 500 IndexShort
Calling the short-term top on an hourly parabolic S&P 500 rally
Updated
A quick note to suggest that we are running into major resistance here at 2885-2892 in the S&P 500 after a spectacular 157 point rally in a few trading hours.
This jaw-dropping rally is all off of the hopes of the US Fed cutting rates 2-3 times in the very near future. This, of course, is while the tariff and trade picture is more unclear than ever. I believe what we have seen in the past 3 days is a classic short covering rally followed by even more squeezing. I don't like calling tops but I think now is the time to get very short.
See the chart above for my thoughts. I am publishing this quickly as the move may happen quickly.
Short the S&P between 2883-2892
Stop 2902
Target 1: 2850
Target 2: 2810
This jaw-dropping rally is all off of the hopes of the US Fed cutting rates 2-3 times in the very near future. This, of course, is while the tariff and trade picture is more unclear than ever. I believe what we have seen in the past 3 days is a classic short covering rally followed by even more squeezing. I don't like calling tops but I think now is the time to get very short.
See the chart above for my thoughts. I am publishing this quickly as the move may happen quickly.
Short the S&P between 2883-2892
Stop 2902
Target 1: 2850
Target 2: 2810
Note
While technically stopped out by 8 points a few days ago, I am hesitant to cover this position as nothing has fundamentally changed. I would like to change the parameters to:Short the S&P between 2895 and 2905
Target 1: 2850
Target 2: 2810
Stop: 2925
Trade closed: stop reached
Stopped out twice!
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