2nd waves are typically sharp and deep retracements of the preceding move. Today's rally, if it's a 2nd wave, is characteristic. However, market technicals today contradict the 2nd wave thought, volume was quite good with up/down volume at ~4/1 and the A/D ratio at ~5/1. So it's possible the selloff earlier this week was another two day wonder and we're back to bull mode. Booo hisss!
The Vindicator gave a sell signal around 11:30 AM (CST) today when the V Stoch topped a reading of 75 and rolled over. Went short ES @ 1203 as a result. What's interesting is the sell line on the Buy/Sell Vindicator has plunged. If it approaches the zero level, and it looks like it will, that would also be a sell signal. That condition led to the short sale Monday which did so well. If today's short ES still exists whenever that happens it might make sense to add more short ES, or possibly a lower risk options put spread.
The 5 minute chart sported a V Stoch divergence almost all day which really didn't pan out. Only value here is to highlight the need to always trade with stop losses - nothing is 100%.
