Second Failure of 50 Day Moving Average, Possible Shorting Opportunity
There are key points and days to consider heavily when following markets and deciding which direction to play. If you study charts you are able to see patterns that repeat themselves over and over again.
One key shorting opportunity that I have seen before major market declines is the second failure of the 50 day moving average. Today's nasty reversal where it closed down after being up for most of the day fits this criteria especially when it coincides with the failure of the 50 day moving average.
The volume was above average and this leads me to once again be bearish on the market. Now is the time to short or buy inverse etf's such as REW or SH to protect against another decline. It is not wise to be long this market. Trailing stops should be monitored closely. Now is the time to short not when the market reaches new lows.
Gold mining stocks will be monitored closely.