Also watch 200 on MDY. Yes, this opens up the stop a bit, perhaps.
This confluence of resistance suggests that we have to at least consider the possibility that this we are at, or very near, a swing top of some kind. Obviously, if short trades from these levels begin to work, we will have to watch support below us carefully, and watch how the price action develops.
I'm tired of writing a disclaimer. Position yourself accordingly relative to your risk capital so you don't frell yourself. Watch your own ass. Me personally, I love shorting, as I hate everything and trust nothing. I can't sleep at night being long. With regard to the stock markets, I will always be far more likely to overleverage myself on a short trade. I do believe, generally, that the odds of a flash melt-up are much lower than a flash crash. I am unaware of any flash melt-ups in past times in the US stock markets.
Having said that, I would not be surprised if the future, in my lifetime or the next, brings a flash meltup. How else could you frell the shorts? We have this quant for the masses nonsense now.. someone always has to lose, no?
Practically speaking, it is obvious that, as a kindapermabear, my ideal position is cash until we have a downtrend. This will not stop me from trying to pick a top, though. It is an artform best left for those who love to endure pain. I am able to sometimes proclaim bull when analyzing the markets, but with regard to my own actual trading, in practice, this is difficult for me. I'll always have a short bias.
Do not take any action based only on my commentary! It is 100% your own fault if you lose.
