Per my plan I sold all my long positions early Friday morning. I believe chances are good that we see a sell off (5% to 10%) starting this week, maybe as early as tomorrow for the following reasons:
- Number of new highs didn't expand (actually shrunk) as we hit new highs in major indices last week.
- Since mid November last year, SPX is up 20% without a significant pull back, chances are good that one is coming soon.
- SPX is trading near the top of its price channel, upside is limited at the best.
Disclaimer: The views expressed are provided for information purposes only and should not be construed in any way as investment advice or recommendation. Furthermore, the opinions expressed may change without notice.