Yes, it is the obvious trade, but it is the high percentage one. A waterfall decline can come anytime, theoretically, but usually not this early in the chop phase. Yesterday was savage, and it means that a one day wonder decline is out of the picture, but it doesn't mean that you will be getting an extended dip. It was only in March when we finally stopped going up every day, and just this week when we've rejected that SPX 2400 area as being strong resistance. For such a strong extended rally, and a really long bull market, it takes a lot more choppiness to finally go down in earnest.
I am not long yet, but I am looking for a spot to get long close around SPX 2340-2350. I expect this dip to be brief, but upside should be limited to 2390.
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