S&P preferably short

hello,

In reference to the previous entries directly concerning the current situation on the fSP500 Index, I will try to describe what is currently happening on the chart. In the previous two entries paid attention to "escape" so called Smart Money Flow Index that is shown on the chart <here>. Analyzing the chart today spread between the two indexes increased even more.

It should also be remembered for a record number of investors who took a loan to purchase shares, which may result a sudden falls on the equity markets <more info here>.

Since the last analysis, market quite unexpectedly went up strongly <chart 1>. I did not see the reasons for which the market so hard to behave where in addition it was clear outflow Smart Money.

chart 1. fSP500 Index H4, 2014-04-07

Another factor, which only confirmed my fears about the further growth was volume regarding futures contracts on the CME <chart 2>.

chart 2. futures E-mini SP500 Futures, 2014-04-07

The chart is easy to see decreasing volume to strength growth. This means that fewer and fewer takers was to deal long positions. It was the perfect time to buy short positions. In the coming days, definitely I expect a continuation of the fall the SP500 Index. I believe that we are at the beginning of the correction that its range can come close to the levels of 1738 points.

best regards,

oscarjp

The information contained in this publication is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Any opinion offered herein reflects oscarjp-chrimatistikos current judgment and may change without notice. Users acknowledge and agree to the fact that, by its very nature, any investment in shares, stock options and similar and assimilated products is characterised by a certain degree of uncertainty and that, consequently, any investment of this nature involves risks for which the user is solely responsible and liable.