Bulls jump'd for joy today because the bear flag in the SPX didn't break due to a rumor that China is buying Italian bonds. In the chart below you can see that China via the FXI is already breaking down and the MACD is ominous. While we won't go straight down, I still think that the game plan is to sell rallies.
While I'm bearish on the intermediate term, FXI is at the lower end of its bollinger bands (not shown) and the SPX did hold its channel. Therefore, I'm open to a bounce but looking to sell it. And if we just start selling off I'll be looking to press shorts.
Always use stops and proper risk management!
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