"I read you opened a short on SP near or at the 200 MA. Do you think the MA will be violated? Is it a way of hedging just in case it is broken down? A question so I can learn: Is it advisable to go short at the 200 MA? Or is it better to wait for a breakdown to initiate a short pòsition? As usual, thank you very much for your thoughts and for your outstanding job.

David Fuller's view Thank you for your comments and questions certain to be of interest to many other subscribers.

Yesterday's short was only half its previous size because, as mentioned, I was selling into weakness and above round numbers. The MA's proximity, although not mentioned was a third concern but I had already seen a number of MAs broken by other stock market indices. I wanted more hedge short coverage.