If the bulls are going to make any type of stand here they have to defend this line in my opinion. It’s not even that great of a victory, but at least it’s something that the bulls would be able to build off of. A bounce off that trendline should coincide with a break of the RSI downtrend line to the upside.

If I was seeing any type of confirming indicators suggesting a bottom I probably would of scaled into some long etf’s, but sentiment is downright bullish among option players giving me zero confidence that we’re going to rally, despite our severe oversold state. We’re entering our 5th week in a row we’ve been down and that doesn’t happen very often, but everything is still pointing to more selling. Save for some major government manipulation I’m not seeing the catalyst we need to bring in the buyers.

Currently hold no longs yet, and remain short a few gold miners.