Thursday, August 20, 2009

ES Chart update, and why I went short today

Most of you know that I went short today via SDS. I layered in SDS 3 times between 1004 and 1007. This was based on charts I drew yesterday that continued valid throughout the day.

In my post from Wednes 5:07 pm titled "ES up to 1007 or 1016 then down to 965?" below, I suggested that ES would go to 1007 or 1016. Today Thurs it hit almost exactly at 1007 and began the current decline. The RSI trendline remains in tact, even WITH the advance higher today to 1007. The move up did not violate the RSI, rather the RSI made a lower high, with a higher price (this is divergence and bearish).

I've re-attached the updated chart here. Not much has changed, the original chart remains valid.



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