Today's lackluster market action edged us closer to the lower regression trend channel line on the Daily Dow chart. A drop of 50 points tomorrow or two more days of action like today will create a bearish setup. Then a drop one day after that will be the trigger, signaling that the upward trend dating back to the end of August is over.
If, on the other hand, we get some positive action in the next three days, that will keep us within the RTC channel and suggest that the uptrend will continue. The S&P futures right now actually aren't looking all that bad, up 125 at the moment. In the meantime, it's just more watching and waiting. I'm still not going short just yet.
Today I added 100 shares to my position in CIM (Chimera Investment). I also sold 100 shares of VZ (Verizon) at 32.93, taking a profit. VZ is looking a bit toppy to me, having formed a bearish engulfing pattern today that took it to the edge of its lower RTC line on the daily chart.
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