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In the last post, I mentioned that "a pull-back at this point towards the underside of the wedge would make a nice lower-risk set-up for a short". Sure looks like the SPX is doing just that ! See chart :

While the SPX can continue to challenge this rising trend-line, a drop that breaches both the recent low, as well as a close below the 30 day SMA will really confirm a downtrend. This may happen over a few sessions. If that happens, we may not see 1300 for a long time. I know of some aggressive traders that will take position here with a close stop above 1303 or a slightly further stop at 1315. But that’s not us ! We take trades that have very high probability of success, specifically iron condors.

Let us see what this week brings…

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