Pimp My Trade

My Line in the Sand

Posted on April 20, 2009 by Adam

I mentioned earlier this morning that I would start to get bearish if the S&P violates its bullish trendline. That has happened, now, and I’m looking for an area to use as a line in the sand.

Looking at a point and figure chart to color my analysis, I have identified a pretty interesting price level. If the S&P prints 835 exactly, it goes onto a sell signal. That’s where I will look to add one or two bearish positions. At that point, I would look for prices to run all the way down to 800.