Back in the resistance zone

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The SPY has had quite a rally back into the previous resistance zone.This opens up a great opportunity for a short, based on the following observations:
  • OBV is declining during this rally
  • MACD signals loosing momentum and is about to turn negative.
  • Stochastic signals overbought.

The risk reward ratio for the short is more than 3:1 when the stop is set to the previous top and a modest downside target.

Feragatname

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