The market is overbought short term, but the trend both shorter run and intermediate term are
still decidedly positive. Nevertheless, I plan to use leveraged short ETFs on signs of price
weakness probably through the remainder of the month.
I have linked to the SPX % of stocks above their 50 day m/a's. $SPX50AR I use this chart to
help me decide on long vs short decisions and watch the action of the % reading against its 10 and
25 day m/a's. I have only traded long since the end of 2008, but with three years having past
since then, it seems about right to use a more balanced strategy. Study of this chart is worth the
time, as it has been a very ok guide to the market for many years.
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