I closed out of my shorts today based on the 5-day ARMS showing a deeply oversold condition combined with today's price action and a short term head & shoulders topping pattern on the VIX.
Note the recent rallies after previous similar oversold ARMS warnings. If we get a rally, I'll put my short back on because I am generally bearish on the market through October.
And the S&P is up 15 points this morning. I have a feeling this rally is the last hurrah before the bottom drops out of the market.
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