All three major stock indices (DOW, S&P 500 and NASDAQ) rallied strongly yesterday without first breaking their Feb. 9 lows so we are not getting the bullish divergence signal we had hoped to see. Nevertheless, the DOW and S&P 500 are rising up close to ideal targets for a sub-cycle peak (these targets would be around 24,350 in the DOW and 2,700 in the S&P 500) and we are near the center of the current reversal zone. I am going to sell short here with close stop loss points just above those targets; say, a close above 24,600 for the DOW and a close above 2,730 for the S&P 500 (for those trading ETFs, a DOW fund would be less risk at the moment).
Entering a short position in the broad stock market today with stop loss parameters as stated above.