Market still in downtrend....BUT trying to change that

S&P @ 1308-09 and +22 handles on the day

My previous post I stated I would not real in any shorts until Market had strong reversal and got through 1297-1300....so this morning in order to stay disciplined I again took on full hedges around 1301-02 on the SnP...the reason I haven't covered any shorts on my individual names or eff's is because I'm short from much higher levels and those names are still clearly broken...I expect all of them to see lower levels down the road...BUT the short-term strength and rally from breakdown has to be recognized...If it continues I will be hedged up...If it fails then I simply take my long hedges off and go back to fully short...at this point market still has a lot of proving to do...but many shorts were caught leaning wrong direction and many longs were underinvested which can cause some extreme bounces...

I will try and post all those individual short ideas throughout next few days...

Chart below shows how S&P is right at downtrend line which began this big move lower...above that and there is room to run all the way back to 1337-40 range and even all the way up to 1360-80 range....this is why I'm fully hedged and market neutral at this juncture...once waves clear up and path of least resistance becomes clear I can reposition...