I will be watching from the sidelines this morning. In fact I won't be watching at all until after my 11:15am appointment, but that's ok. When I get back in I want to see the volume run rate at noon. When (I do think it's when and not if) the Qs make a new rally high today I want to see whether the volume run rate is projecting higher or lower volume than the 9/23 top. For the Qs it would take about 72 mil at noon to equal the 9/23 volume. Then, does the market hold the new high or reverse and turn lower on higher or lower volume?
A new high with a reversal on significantly higher or lower volume and close below the 9/23 high would be a potential short signal, but we must be aware of the fact that this could just be wave a of 5. Also, INTC has clear resistance at 22 at its upper channel line, so this could be it for INTC for a while.
I will consider legging into some short positions. As you know I am already 1/2 short the SMH by the SSG, a bit prematurely, but I will be looking to build some short index positions in anticipation for a correction to the 200demas for the indexes in November. No need to get heavily short this market though, and I am maintaining my core long positions.