The U.S. equity market is now looking very toppy. After a round of buying this morning, the Dow has come within a fraction of the initial resistance levels on the chart I showed you in today’s earlier issue.
As I pen this update, the Dow has sold off over 160 points from its high of this morning, in a matter of minutes and is near going negative on the day.
It’s still too soon to say, but we could be seeing what is called “an outside reversal day” – which simply means the market trades higher, then sells off, then closes below yesterday’s close. A bearish sign.
If this is in the cards, it could be a great start to the next leg down.
Unfortunately, the pop higher also occurred in Europe’s markets, setting off the protective sell stop for ProShares UltraShort FTSE Europe (EPV) at $56.29.
Not to worry, if this is the top in Europe’s markets as well, I will recommend re-entering that position soon. Wait for my signals.
Meanwhile, you should have easily purchased shares in USO this morning. Make sure you have entered your protective sell stop for the position, good till cancelled at $13.34.
Best wishes,
Larry
