Based on sentiment risk we would use a touched stop at 205 intraday to get rid of trading positions, i.e. what were added at 205. Investment positions, as always, use a close below 202 to get more defensive. This may very well be moot – yesterday’s low is quite possibly the low of this correction, as the stochastic is almost oversold on a short-term basis. One of the things that could surprise and hurt the markets is a strong rally in the dollar. UUP has a double bottom, with a higher second bottom, an extremely favorable formation.
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