The shorts get squeezed

I did cover my remaining short position in DIA today for a nice $4.26 gain. Even though I think the market will be going down again, I wanted to lock in my gains and hopefully get a better level to get short again soon.

As I mentioned in my post yesterday, the rubber band was getting stretched to far and we were due for a bounce, well today we got a bounce. I included a daily chart along with the 60 min. chart (bottom) of QQQQ to show that even though we had a rally today, which I think is a dead cat bounce, the trend on the 60 min. chart has not turned positive(blue line over red). This is true with all the index ETF's. If we get another up day tomorrow, then we will be close to daily EMA resistance. A lot of technical damage has been done and one or two days of gains in the index's are not going to fix that. I don't have any set-ups tonight, I want to wait and see what happens tomorrow and then assess things. One think I do know is that at some point we will get another chance to short the market.