What happens for the rest of this week is a big, big deal.
We are at the precipice of a cliff. Or we're simply at the lower part of a very big range. I have no idea what's going to happen next. Looking at index charts, technology looks very vulnerable. Yet the Russell 2000 looks like it could make a big push higher from these levels. Just look at the $SPX:
The Powers That Be have an interest in defending 1040, and they've done it again and again. If 1040 breaks, the "obvious" head and shoulders pattern we've been discussing for three months comes into play, and we're looking at a hard fall to around 860 (far below my target of 925, often cited here).
At the moment, my portfolio is up 0.52% while the S&P is down 2.67%. You can imagine how I feel about that. I have 73 short positions and 2 long positions (BP and, much larger, GLD).
Today has been profitable so far, but I'm terribly disappointed, particularly since this end-of-quarter nonsense (risk-reduction on my part) has cheated me out of some substantial profits. Of course, it could have gone the other way, so I'm trying to remind myself of that.
