The market continues to pull back with increasing negative sentiments. Ever since Oct 5, 2012 non-confirmed closing high from the DJIA, the market has headed down. Although the SP500 is still holding on to the 50 SMA, breaking the baseline of the double top price pattern does not bold well for this index. The nasdaq 100 and the Russell 2000 are under their 50 SMA with declining 20 EMA. Having GOOG earnings report due out next Thursday after the market close and next week is October options expiration week, the market is bound to experience some wild price movements. I will be very suspicious in the sustainability on any rally at this juncture.
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Disclosure: Long SPY PUT & QQQ PUT
