... the intermediate time frame trend remains bearish. I took the trouble to keep you updated every couple of hours today since I thought some of you already short may panic and cover on a day that most likely is going to be proven as a bull trap. SPX remains bellow 5 days SMA but just a little bit. Dow and Nasdaq didn't even touch the 5 days SMA today. Tomorrow we need a down day or at least a flat one to feel comfortable with our short positions. Another big move on the upside is going to spell trouble so we need to be carefully here.
Volume was not great for most of the day, it picked up in the last hour but it was dominated by bears. Look at hourly chart for SPY.
Overall I think we are safe so far despite this big scare we had today. Let's see how is the market going to digest the Irish bailout and the GM IPO tomorrow. This kind of events usually trigger emotionally actions from market participants and today was not an exception. On daily chart the most significant event is DMI turning neutral from bearish.
All the best!