This is pretty much a follow up on the two previous posts.
Last week’s top happened on Wednesday, 17th, when SPY reached 92.43, so we have now a pretty clear stoploss: if SPY goes above 92.43 during this week or the week after we should cover our short positions.
That said, the scenario seems to be turning favorable (not confirmed yet) to the bears. In the above chart you can see that Stochastics are pointing to a short-term down movement, while MACD is very close to giving a sell signal. Plus, SPY closed below DMA’s 3×3 and 7×5, but still above DMA 25×5 (near it, though). Tomorrow, Monday, should be very important to our scenario of a sell-off through the end of the year: a close below DMA 25×5 will probably turn MACD negative and pave the way for a more significant fall.
However, remember that we are at the end of the year and volume tends to shrink. But who knows, we might have a surprise, since we had so many throughout the whole year.
