The Trader Daily


Bob Byrne

 | Jun 26, 2014 | 7:30 AM EDT
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Given the severe beating short sellers have endured in recent weeks, I sincerely doubt any of them felt particularly relieved by Tuesday's bearish reversal. That said, seeing the market rebound on Wednesday and retrace the bulk of Tuesday's sell-off was simply another rusty nail being driven into a quickly closing coffin.

It really doesn't matter what you attribute the market's unrelenting bid to. The bottom line is that being short the indices for any length of time has been a generally poor trading plan. At some point the market will not only bend, but also break. That point, however, is not now. For the time being, short-term participants should consider measuring the market's strength by its ability to remain above a 13-day or 21-day exponential moving average. More intermediate and longer-term folks should remain focused on the 50-day simple moving average....351 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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