Today the S&P 500 closed a few points higher than yesterday but still stayed below our new 3,871 stop loss level. The DOW stayed below yesterday's high and so far is not violating a strong resistance line around 30,820. The NASDAQ nearly touched its recent high from Jan. 25 (13,723) but quickly retreated back at the close of today's trading (bearish behavior). This is looking like the market is topping out now. Even if the NASDAQ edges a bit higher tomorrow to make a new high, the S&P 500 and especially the DOW do not look like they will do the same, and that scenario would give us another bearish divergence signal in our current reversal zone.
Let's hold on to our short S&P 500 position for now and at least until our stop loss is violated or the DOW's resistance line is cleared or all three indices make new highs.