June ES Top of Channel with ADV/DEC bearish cross

[Autobottrading]

Yesterday Autobottrading.com’s advance/decline indicator crossed down bearishly since the bullish up cross on March 30th. This does not imply an immediate bearish outcome, but does warrant caution especially if the equity market becomes short term overbought while the indicator remains in the bearish/y positioned. As we posted last week we believe the market can see 1233 on SPX 500 prior to a deeper correction, or more, but we should see a 23-38 pt move lower prior to reaching the long term target. The open gap at 1168 looks like a likely magnet. Autobottrading.com’s Advance Decline tool has reached overbought levels this afternoon after yesterday’s bearish cross. We will be selling 1/4 position of June ES market on close, adding to our 1/2 position already sold short.
Update chart of the Advance Decline on swing time frame:

The 10 min chart of June ES reflects growing short term danger

 

[Autobottrading]

12:21 est N.Y time Ok expected sharp drop has occurred. and has tagged support at 1085 basis June ES. We covered our shorts in futures but remain long SDS for lower targets in time.

 

[Autobottrading]

20100421 10:24 est Autobottrading.com’s advance decline indicator shown below has crossed down from overbought levels after the bearish cross down signal (red arrow down) indicated selling pressure were in control. The last crossed down resulted in a sharp 20 point move lower. We expect a larger correction. The character of that correction will determine if the next rally will meet our long standing target (however much we disbelieved the possibility) of 1233 SPX cash. Concentrate on shorting the weakest names at resistance intraday or sell short June ES on bounces.