Markets recovered last week and we are now close to breakeven for the current lunar Green Period.
With a couple more Green Period days coming up I think the S&P will get above 1200 again, but what comes next remains to be seen.
Here is the updated S&P 500 chart (click for larger image):
Market action has not been convincing since the early August drop. The next lunar Red Period could easily take us back to retest the lows. My Earl momentum indicator also appears to come close to signalling a short term top. Current S&P500 targets are 1100 and then 1040.
So, if we get a positive start to the week then I would use it to reduce market exposure or buy some protective puts.
Stay tuned.
Danny
LunaticTrader Blog 