We advised covering shorts in US equities in the October 16th edition and re-selling short again after a rally, in the October 21st edition. We pointed out resistance levels starting just above the prices at the time of writing, that would be appropriate places to choose to sell. Here is an update to the two examples we used to show the resistance:
So the Nasdaq has pushed through but the Dow has not. There is a similar picture in the well-known Nasdaq tracker ‘the Qs’ but bears should be encouraged by the longer-tern resistance still just here (in the Dow, as shown above) and the even greater resistance that still looms overhead:
We still have not found a place to sell any other stock indices short but we watch carefully.
