S&P 500 close = 1093.48

Signal = L/S

Position = S

Markets were quite volatile in the first hour or so this morning. I waited for the dust to settle before trying to figure out which way to trade. Once we broke the 1093-1094 area, next stop was to the 10 min fibonacci level around 1097. Then, markets broke back down and whipped around again in the afternoon. Luckily, or maybe skillfully, I was able to make some decent money today going long first and then shorting around 1097.

The daily trend still remains bullish above the 1029 level. The short-term trend is still down based on the break down on Thursday. To ride this short-term trend down further, I am holding onto TZA through this weekend. Recently, some of the larger moves have come as either gap ups or downs on Monday mornings. Let's see if we get a gap down on Monday.

Overall, the markets are starting to look like they are topping out. However, let's not jump the gun and call the recent high the high for the year. We still have another 7 trading weeks left before the new year. Levels to watch for Monday:

S&P 500:

1094 - 10 min FIB resistance

1084-1085 - next level of decent support

Russell 2000:

587-588 - 10 min FIB resistance

575-577 - next level of decent support