The last few trading days put forward a very strong case calling for a short. At this point, i am confident in putting up a fresh short position, although i am already short. The cluster of red bars are perculiar- notice how they gap up 3 consecutive trading days, on the strength of the DJI making new highs. Our local market however formed a clear rejection zone and converged into a triangular pattern. The momentum indicators point towards divergence and the latest trading day has confirmed the downside breakout. Volume is increasing, signalling increased selling.
Target 3078. Sell in May indeed.