Well folks, we finally had it. A down week. This is the first down week of the year. We have been up 10 weeks in a row and finally pulled back. We just gave up the past two weeks of gains in 5 days which is not surprising. the first down week was going to be a hefty push lower because everyone who road the train from December 2018 are going to be taking profits on the trend break. The ultimate question is what is going to happen now?
I have covered much of my short that I put on because I do not believe this is going to go STRAIGHT BACK DOWN. No one was able to get in on this rally so in my opinion the first dip is definitely going to be bought back up. This rally was resilient and the guys who got in at the bottom need to sell it off to everyone who will be chasing. What we do know is that we have a pivot now. 7200 is now (has been really) a key level. Over 7200 you have to be long the market. Below then there is no reason yet to jump in with two feet. I believe the market pulls in some more next week and possibly the week after. From there we will need to assess…do we BTFD, or do we press the shorts back below the 200 day MA.