Sunday, April 14, 2013

Upside for SPX Is Limited

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.