I still think the wedge formation is in play. The market has not closed outside of it yet or broke free of it's range. The market is now in the sweet spot of the wedge, where the market must makes it decision to break out of the wedge.
This is how I use 2Sweet's Retracement Levels, and my own analysis to play the market and the wedge pattern. If we look at the RL's, the next Short Level is 838.36, which hold a 58% chance of a reversal at this level, and it the most frequent level as well. Each level above the 838.36, provides an even better shorting opportunity. If we look at the next Support or Go Long level, it is at 816 with a 26% chance. After that the next level is 804, and that is only a 44% chance. So based on his odds, my overall bearish views, and the current wedge pattern, I am playing a move to the downside, with the wedge pattern being broken.
I just have SPY Jun 70 Puts. I know I swore off options but I feel comfortable with my analysis and risk reward on this trade.
Here is some reading to make you ponder if everything is going to be alright:
Ireland is having a worse time then the potato famine
Great write about about Easter Europe and their bank Failures by Mish
There is money to give Dorthy in Kansas
Japan's GDP will be smaller then their penis sizes (IT'S A JOKE, I received permission from my Asian friend to post that)
Tomorrow is D-Day for the Big 3
