Thursday, February 21, 2013
Closure on EEM Bull Diagonal Call Spread
This morning, the market dropped on higher volume again. Based on the following indicators that I use, I'd like to assume the current rising wave is over (even if IBD has not declared market correction yet).
1. There were a few distribution days as noted by IBD's change of outlook to market under pressure.
2. Overbought indicators at the intermediate term: MS of SPX is over 80 and the Delta of my long IWM strike had reached 85 a few days ago.
3. The leading indicator I used for this wave is EEM and it's technically damaged (though it has not fallen below the long term uptrend line yet.
So only time will tell if the closure is too early or not. I closed all of my bullish postion trades this morning.
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