The SPX sold off with more volume than in the past days, and we will likely bounce in the morning.
I used this short term oversold condition to close the TZA and ERY hedges. I am almost all in cash with a few positions long.
Depending on the action in the day tomorrow, I may re-enter the short positions (inverse ETF’s) or start some new longs. Key point in the market right here and right now.
If we bounce and then sell off below today’s low, we will likely see even more selling, which will lead to more selling, and so on and so on…
On the other hand, we may bounce and resume the Macro Uptrend.