So we had a little bounce-back from the big up day on Monday. It didn’t do a lot of damage in terms of how many points we had gone up – but suddenly we are back down in the 800 area.
It goes without saying that if this uptrend is going to succeed, then the 800 level, which had acted as strong resistance coming up now comes through as support.
So the play is easy – if we go up, stay in the long ETFs – the general consensus is that there should still be more room on the upside before this fades. But if 800 falls, get out of the longs and go with the inverse ETFs if support at 780 fails. The low on the current 3 day bar (a breach of which would signal a change to a downtrend) is at 766 today.