And just like that, the rally is history. Today was the second big day of selling as the major indexes closed down over 2% – some closer to 3%.
The market is in correction and now the big question most investors will have is how far will it fall. Nobody knows, but all we need to do now is ride the wave down.
I added positions in the two ETFs I highlighted previously after they continued their breakout.
IBD suggests that we not short on the downside breakout, but rather on the first sign of weakness after the first pullback. Right now we have a little over 4% before the S&P hits the 200MA which could provide a bounce so I am still in favor of holding ultrashorts that would give us enough room to hopefully never fall down 5% on a pullback.
Otherwise, be patient and wait for the pullback. Regardless of what you do, know that we are in a down-trend now and could be for quite some time.
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