S&P 500 at 840 looks like a strong resistance so far. Volume is light today. In addition, my short, GE, is still below its \$11 resistance. And the finanacials isn't moving much.
Target: \$85, around the 200d MA and my trendline as shown, Figure 1 right.
Stop: around \$45 - \$46. Or S&P 500 staying above 850.
Bottom line: This rally in the market looks a bit over stretched based on the indicators. We've been going up and up since the beginning of March. I still believe we're in a long term downtrend. That's why I'm shorting this counter-trend rally. And today looks like a good day.
Update: I seem to have a thing for picking my stops. SRS just glazed below \$45 and then bounced back to above \$46. My stops typically mark the turning point. In other words, I'm usually in too early. So if I just set my entry price to my stops instead and let the price come to me, then that might be a better entry for me. Better yet, before entering a position, wait for the stock to hit my mental stops and watch how it performs.
[caption id="attachment_1183" align="alignright" width="500" caption="Ultrashort Real Estate ETF"][/caption]
[caption id="attachment_1184" align="alignright" width="500" caption="S&P 500"][/caption]