The Alligator seldom lies

In this morning's post, I mentioned how the Alligator indicator had had its "mouth" closed shut for way too long and that the coming move, up or down, would be sizeable. As you can tell, the Alligator seldom lies...


Also, as posted this morning, I said I would look for weakness from the 4430s to the 4450s and for strength anywhere from the 4410s upwards. After a few scalps, short and long, we retraced back to the 4430s briefly and I managed to get a late short entry at 4423.

We are currently quoted at 4419 on the bid. At these levels, my daily momentum indicators are back to negative. My short is quite small as you can see: if the downtrend continues I'll be looking for rallies to sell and add to my current short, and will move my stop adequately if this turns out to become a position trade.