If this bearish timing signal that I received this week is going to work out I feel that it has to happen soon to keep the downside momentum going. So far the selling volume on the Nasdaq has been very high while Friday when the market rallied substantially, it was a lower volume day. The VIX chart is in the video where I talk about the bullish RSI action, combined with the breakout of it’s current range, supports higher prices –which means more selling in the general markets. It doesn’t have to happen, but I like the edge on the short side at this point.
@stockrake also went short on Friday and I notice that we have very similar trading systems and I respect his trading as he is right more times than he is wrong, just know that he is very short term oriented like myself when it comes to switching between a bullish/bearish bias. His blog is definitely worth checking out and provides a lot of insight on his twitter feed.
I also checked out a basket of international markets that I track, and out of the ones I follow I’m not seeing any bullish patterns, with most of them being down 2-3% last week. Oddly enough the only index I track that actually rose was the Russian stock market, posting a 3.5% gain, and has a very bullish flag pattern forming which is likely to continue moving higher.
