Securities Research Services

Thursday, September 04, 2008

Don't Say We Didn't Warn You

Sentiment readings remain surprisingly stuck at neutral and the VIX still has plenty of room to move before reaching fear levels struck during March and July lows.

The SPY has support at a multi decade trend line in the $117-$120 area, so this is likely going to act like a price magnet as we move into the fall trading session.

Don’t expect the market to head straight down, but certainly use any strength to go short again until the SPY reaches its trend line.

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