Short term bounce setting up?

***UPDATE: Looks like we may be getting a breakdown rather than a bounce… indeed.  Breakdown it is, making this an ignorable post (as if there were another kind).

Well, we are pressing against support, and though I will continue to hold my longer term bearish bets (EUO, SH), I’m adding some TNA (3x long small caps) here.  It is setting up for a possible breakout and there’s a pretty clear-cut exit door not far away.

Below is an intra-day chart, with the falling (bullish) wedge taking place of the last 2 weeks.  This bullish idea is very short term.  And I think that if we break to the downside, the risks are pretty severe, so I make this trade with tight stops in place.

Should support give way, at S&P 1110-1120, I expect a fall to the mid-low 1000’s could happen very rapidly.  That said, there is a lot of pretty critical resistance in this area and I expect to the bulls to keep the fight alive a little while longer.

In the slightly longer term, high yield bonds, copper, and emerging markets continue to indicate the next significant leg is likely downward.

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