By: Scott Redler
Shorts have worked well since the uptrend broke, but now is not the time to get greedy. Look to start covering your shorts in the 1100-1110 area in the S&P. The easy part if this move is over, and that is always what we try to capture.
I think we are very close to a oversold bounce. We moved about 9% off highs, and it’s time to work off some this oversold condition. That doesn’t mean there isn’t more downside action to come though, however. I ultimately see us hitting 1040-1060 in the S&P over next month or so, which would be a 13%-14% move off the highs.
There is plenty of time between now and then, and things can change, but until further notice that is how I see things playing out.
