Market Rejected

16:18 America/Los_Angeles 04 Jun 2010 1 Comment

Today the bulls had the market primed and ready to rally through the 200 day moving average, but instead they market got rejected big by the 200 day moving average. This returns the market to bear market territory and reestablished the downtrend….

Luckily the NHF portfolio wasn’t swayed out of the short position that we have been in since late April. Below is a chart to put the 200 day moving average into perspective. Its a 4 year chart of SPY showing the past rejections, which preceded the the huge selloffs of 2008 and 2009.