Feels good to be right!

In my previous post:

The new retracements and expansions confirmed the 1104 level. I found a new confluence zone at 1125 area that could prove to be stiff resistance.

The SPX topped at 1131.72 (a mere 6 points off) and fell around 3% in a matter of a day and a half. Not only did we have a fairly dramatic sell off, but we closed today below the 1104 support that I have been stressing.

As far as trading strategy, I have been taking small profits along the way down but the sell off occurred so quickly I did not find a good entry point. Moving forward, I am going to wait on a confirmation of the 1104 breakout to the botton on the daily chart. I think we could rebound a little tomorrow and test the 1104 area before moving downwards again. If this occurs, I will take a large short position with a price target of 1040 and a stop loss at 1125.

-Wown
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