Things Get Dangerous...

US Market closed a strong day EXACTLY how I said it would yesterday! Here was what I said:

"Even so, I and expecting and won't be surprised to see today close a very strong bullish day, taking the S&P500 above its 30SMA before things get really dangerous"

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So yes, the SP500 has managed to close above its 30SMA strongly like I said it would and, like I said it would again, this is when it can get very dangerous. From here a strong opening typically leads to a negative close and a failure of the reversal. In fact, even if this reversal holds, moving down to retest the 30SMA for support before moving higher is high probability pattern as well. As such, all in all, at this point in time, I see more short term downside than upside and a reassessment of the coming short term downside will be necessary to ascertain its nature, whether a retest of the 30SMA or yet another failure to breakout for real.

For now, if you have profitable longs, you should really look towards taking profit on them today when market opens positive.

For now, the market remains in short term bull trend within an intermediate neutral trend within the framework of a primary bull trend.