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Sell Sell Sell $

How quickly things change in the world of trading! We have now sold off for 4 consecutive days on above average volume. Just a week and a half ago, it seemed like we would never have a down day again. Psychologically the SPY hit 110 and bounced off it like a brick wall. The US dollar has been trending up while gold is on the defense. GLD broke below the 20 ema yesterday and continues to retrace back towards the 50 EMA. The financial sector which has been Wall Street’s sweet heart since the lows in March was one of the weakest sectors today. Whether this is a turning point in the markets or just another pull back to get long remains to be seen. But one thing is for sure, it is healthy. The markets needed to take a breathe. If history has shown us anything, Greed is not good! Innocent people end up getting hurt!

With the SPY breaking below the 50 EMA today for the first time since July 15th, we need to be cautious with any longs, as there does not seem to be any support until $102.68. After 4 straight days of selling, we see some nibbling on the long side with a possible test at $107.

As always, you want to have scenarios (STOCKS) for both sides of the market. spy28

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