Stocks This Week: Sell The S&P Short

The S&P appears to have fallen into wave five to the downside which is likely to complete by the end of next week. As daily cycles were bearish today, the same condition applies on Tuesday (the market is closed on Monday). The market is due to make a low on the 24^th or 25^th. The minimum target on the S&P is a price below 4230. The period February 27-March 6 is the next period of seasonal strength.

Post-OPEX (options expiration) week has been very bearish as you can see in the histogram below. Note that all of the days have negative expected values. Friday has been the strongest day in a bearish week.

Buy or continue to hold the ProShares Trust – ProShares UltraShort S&P500 (SDS). This ETF rises in value as the index falls.

S&P Performance in Post-OPEX Week in February (21^st-25^th)

Blue: Average Percentage Change

Red: Probability of a rise on that day

Green: Expected Return (Product of the first 2)