SPX - 3 questions to ask yourself

2 days of relief for the Wall Street guys. 2 days ago, 1820 acted as support as expected. Price had just gone too far without any significant pause and 1820 was the obvious level after 1873 did not hold long.

The three questions to ask yourself are:

1) Are we seeing a retest of 1873 and a retracement - an opportunity to load up on shorts?
2) Is this a dead cat bounce?
3) Is the 2 day rally the result of long positions or short profit taking?

In the end, everything looks still fragile and although most of the finance media world is talking about a recovery, it is too early to call it that. We are still way out on the outer Bollinger Bands. Thursday's price action wasn't totally convincing - neutral at best. The US economy is not showing strength and the global situation is everything but rosy.

However, we have to take it as it comes and it's obvious not the time to short further. The only shorting opportunity exists below 1820 or on a retest of 1990 which seems miles away from down here.