The Russell 2000 is nearing the March Lows at $77.70 and I will be watching this level very closely. Looks to me like we will need some type of QE or we can’t catch a bid. That said, we are extremely oversold on most index funds. I would be looking to add to shorts as they cross below their 200 day MA and using the 200 day MA as a stop loss once you short the stock below its 200 day MA. OPEN below $79.65 for example looks to be a low risk/high potential reward short under the 200 day MA….
For the S&P ($SPX.X) watch $1275 and $1270 for a breakout either way… For the S&P 500 we have the 200 day sitting around $1253 and the March Low stand at $1249 — I believe these levels will hold and will give investors a short term buying opportunity/short covering opportunity… That said, we will let price and volume decide how we are positioned in our market hedge positions (shorts)… PRetty wild markets, but we predicted this because the QE2 ending was pretty obviously bearish along with bad GDP predictions.