Well, I have underestimated the effect of central banks’ liquidity supply to market’s movements. I violated my trading practice by front running the markets. Bad ! Being burnt hard didn’t motivate me to update my blog. Fortunately a planned vacation came up and I used it to clear up my mind. Now I’m back to business and ready to trade again.
In the past few days, despite all the pull backs, SPX (the S&P 500) still looked overbought. It was because buyers have been buying all the dips. However daily MACD is in negative teritory now. For tomorrow, the bears need to show strength to break down the channel’s support then hold there to confirm that the downtrend has just begun.