Yesterday, I did a post called “What Thursday Requires“. It might as well have been titled, “If the market doesn’t fall, we’re screwed“, but I didn’t want to be overly dramatic. No matter: the market fell gloriously, prompted by the slavish Zerohedge permabulls breathlessly announcing another wonderful day a few moments before all hell broke loose.
What has happened over the past week has been transformative. Across the board, what used to be support (green arrows) transformed (blue oval) into resistance (red arrows). This applies to the NASDAQ futures:
The Russell 2000 futures:
And the S&P 500 futures too:
As such, my short positions had an overall very good day:
All this “up one day, down the next” is tiresome. What we really need on Friday is another down day, just to help fuel the fire. Pray to any available deity accordingly.
