The main reason I was considering a short was that we first broke a trend line and put in a subsequent lower high. If the bulls were strong, I don`t think we would have seen that. Further, I think we are bound to trade down to at least 1095 sooner or later, but that may of course not be today or this week for all I know.
That said, I think the last hours have just been choppy action on no real volume, so it`s been a draw in that respect. We are however still trading above the 50% level and the bulls were in control (understatement) into yesterday`s close and this morning. So it is probably not wise to bet against them, unless getting some kind of confirmation. So why did I? Good question
I saw your other post about tools to trade the equity indices. A lot of us watch the NYSE TICK (Bigsnack is the pro), but I know that others think it`s bullshit
I used to watch the sector ETFs (XLE, XLF, XLB, etc) to get a feel for the strength of a trend or confirmation of range bound action. Personally, I think it made me more confused than it helped me, so I dropped them. Not saying it don`t work, but it did not for me (perhaps I used them wrong).
For me I found that price action tells the tale alone. Watching NQ (often leads) and YM may help, although it may confuse you at those times when they are not in sync.
You should check out Brett Steenbargers blog. He has a lot of stuff on market internals.
