Please Short Responsibly - $SPY

We all know that we're in a strong bull market right now. Aside from the many calls for a 10-20% correction in the broader markets (IWM actually already did this), the major indices are all up for the year as well as for the month. Coming into this week, SPY was clearly "overbought" with a number of indicators in overbought territory, but as I noted on StockTwits, these indicators by themselves were not a short signal. I also noted on StockTwits that SPY needed to break below $195 first before it had a chance of pulling in further. I like to think of these counter-trend market plays as a type of scalp because they are counter-trend in nature. I wasn't looking to catch a top or capture 20 points to the downside. I was simply looking for a counter-trend short trade looking to play a 2-3 point pull in.

On Wednesday (6/11/14), SPY was gaping below that $195 support level I had mentioned. If SPY was holding below $195-$195.20, I would look to put on a short. SPY failed multiple times to hold above $195, so I got short @ $195.05. I wanted to see SPY get below its pre-market low of $194.60 and then take out $194.30 support level. SPY ended up trading down to $193, which was my downside target. As of now, I'm flat SPY. Going forward, I'd be interested to see what SPY does now with $194.30 resistance and $193 support. The market could very well just consolidate and moves sideways. I guess we shall see. 

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