Monday Market Movement – Bouncing Or Bust?

Just a little correction - so far.  

It's not the 50 dma that should be concerning us – we've tested that plenty of times during this rally  - it's the 200 dma at 2,045 (where the box is on Dave's chart) that is going to be the big point of contention – if we fal that far on the first place.  We haven't tested the 200 dma since January and, before that, it was October's huge drop. 

The first order of bullish business for our indexes is to take back those 50-day moving averages at Dow 18,018, S&P 2,051, Nasdaq 5,005 (hasn't failed yet), NYSE 11,095 and Russell 1,250, which is also holding so far.  Still, 3 of 5 below their 50 dmas is a lot of downward pressure on our indexes and we won't be adding any new bulliush bets until we see at least one of those lines taken back.  

 Asia was mixed this morning or atually all down except the Shanghai, which popped 2% and the Hang Seng, which scratched out a 0.2% gain.  All the rest was red but not too much.  Europe is down actoss the board by 0.5-1% – so that does not bode well for the US open but we are, of course, well-positioned for a sell-off – as it's the one I've been warning you about for a month.  

Not that we weren't able to make money while we waited – 75% of our June Top Trade Review picks are winners already – including our TZA hedge (ultra-short on the Russell) that's on track for a full $10,500 profit if the Russell finishes any lower than 1,250 – that's a nice hedge!  

IN PROGRESS

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