Why I'm short...

Where I think the market could go

The 38.2% retracement is this recent rally is coinciding with the SPY's prior key resistance, I think prices could pull back to that level and it would still be healthy.



The same thing is happening with the QQQQ, notice the divergence at the bottom of it's channel before it broke out.

IYR

This is a chart of the Dow Jones Industrial Real Estate Index. The chart has primary resistance at about 28.00 and also a longer term downtrend line coming down on that level too giving it more resistance b/c the trend lines are converging. It is a key level, and the stock is getting too extended for me to think that it will break it... at least without pulling back first. ---- To play a pullback you could go long SRS, it's 2x short this index. If there is a pullback, and IYR makes another attempt at breaking this key level of resistance, URE is 2x long this index. ---Here are some charts of IYR.




I also have a daily chart up to show the significance of the downtrend line....