That was when the SPY was trading around $143.70ish. It has been hard to find follow-through in this market recently so it is hard to short at lows and buy at highs. Instead, it has been easier to put on a short into resistance or get long into support and look for a just little follow through.
After yesterday's closing bar in the SPY there was a push through failure into bigger resistance after a Fed announcement. This signaled to me there was a potential slowing of momentum in the recent rally and potential downside in store for this market.
I had yesterday's low of $143.31 as a point of reference but used my intra-day time frames to execute the trade. Resistance from yesterday was $143.60-143.80. I first tested a few shares short around $143.60 but after the doji bar on the 15-minute time frame I then had new points of reference/confirmation to my position.
This trade is currently working in my favor. I tweeted at 11:15 "@T3Live_com: covered 1/2 of my $SPY down here around $143.15. Holding half. There is a gap at $142.99- need to see how it handles that."
I am still sitting in the last half of position to get a potential gap fill trade from $142.99-142.66. The longer the SPY stays below $143.40, I believe the greater the chances the SPY reach my target of $142.66.
You can follow me on Twitter and Stocktwits @Chartgirlt3live
*DISCLOSURES: Vicki Haddow is short RIMM (vs. morning highs), JPM (vs.$85), QQQ and SPY. Long FB, GRPN and ZNGA.