THE TRADER TAKE

There are lots of folks expecting this market to be sold at the SPX 1280 area and my take is that I will follow the signals. The VIX VXO tandem is now trading nearly 4% below their respective 10 day SMA's and the 2 day RSI of the SPY is back to 80, so a sell signal is not far away.

However, with all those folks looking to fade the 1280 area, is there a chance that some good news appears and the market rips higher and the new shorts all have to cover at once. Just thinking, but I have seen it before from the wrong side. And looking at the chart, I am not sure I understand what is so special about the 1280 area.