Yesterday we advised covering all equity shorts and reversing into long positions as a short-term ‘tactical’ trade. That has worked well and we would now sell those long positions and look for places to re-short. The background situation remains bearish (on balance) and today is a turn day, which argues that a high point is being made here. The exact trigger for this advice is a 4-hourly top extension in S&P futures:
We would sell short US equity futures right now and will point out more candidates over the next 48 hours, as events unfold.
