Look what service I've done for the bears by taking yesterday and this morning off! The SPY gapped down below the 20 day EMA/SMA this morning. The bears finally got to taste the rain after the seemingly endless drought.
This morning we bounced off the 150% Fib extension target at 134.75. The full target for the day is 134.10.
As per my post from a week ago, the market could sell relentlessly now that it has turned its back on the bulls. The rubber band may have snapped. But I can't afford to take chances even though I may be aware of the current market psychology. My entry points were simply too poor as I had front-run the correction. This morning I took 1/4 off my bear positions (SPXU, SDS, VXX, TZA) to get some pent up relief. (So contrarians take note!!!) My logic was to add them back on the 20 day MA backtest. If that's not allowed (as it may be bears' turn to chase), I'll have to be content to ride it down further with my remaining positions.