The current price action is inline with my expectations. The projection about Financials turned out to be spot on, with the general market rallying “only” 1,60%, while the XLF index has gained more than 2,00%. So, we can say that the banks are pushing the market higher.
I have no idea of how long this party will be going, so I am placing my bets accordingly. Looking to short SPX futures near the 1135 area or on a breakdown below 1130 (see the chart below). Looking to add on the way down, otherwise will close for a loss.
SPX is continuing forming its rising wedge. To say fair enough, the chances of the sudden rise and the sudden fall are equal. For now I’ll stick with my view of a sudden collapse and will be looking to place short bets at a 1125 – 1135 area (see the chart below). There is also a possible Wyckoff Formation in the making.
GOLD also indicates, that the current rise might be done. See the resisting trend lines above? So, if you are into gold trading, I would suggest to short at 1122-1130.
PS. GOLD and SPX are trading at exactly the same level right now.
