I have been writing about shorting the SPX since Feb 29. As you can see, I was not able to short the market at all my WAWS levels as there wasn’t any signal at the said levels till now. Yesterday, we had a toppish signal from the SPX. I am looking to short the SPX with a small target of 2128 and if price manage to close strongly below 2128, then the next target is 2005 followed by 1980. Stops would be the high of April 2016. The key here is 2128, watch out for that level.
One the fundamental front, last week, Yellen said that there had been “tremendous progress” since the recession that began in 2007, but warned that broader measures of unemployment were “higher than one would expect. American consumers have also reined in their spending at the start of 2016, with auto sales last month slumping to the lowest level in a year.