Two Days above the Cloud (by Consistently Incredulous)

By -

Just a quick note: the SPX finally followed the NYSE above
the cloud, ever so slightly… for a whopping 2 days.  That ended today:


SPX_1_081110
 

The cloud range (support & resistance) for the next week
is:


SPX_cloudrange_081110
 

What I find the most interesting is the support &
resistance zone I’ve been watching for a while now.  Going back to July-09, this zone has seen 8
events (4 in support and 4 in resistance), with today being the latest
resistance drop down.  Note: I removed some
of the lines so as not to be the cause of general SoH eye damage:


SPX_2_081110
 

I entered a 40% short position as the cloud + zone ceiling proved
too solid to break through.  I sadly must
report to all of you that now that I have shorted, the market is virtually guaranteed
to have a huge up move, thereby leaving me without beer money for the weekend.

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