S&P Market Crash: Use Basic Economics. It Helps.

CME_MINI:ES1!   S&P 500 E-mini Futures
Hey Traders,

This is probably one of the most important lessons you could possibly learn in trading futures and it's all about the economics of the market and what makes things tick.

Markets like this are ruled by the state of the global economy and any changes take time to occur.

They are not instant and that gives you time to prepare and focus on what may happen in the future based on what you've seen already.

I covered this here:

What you can see on a technical basis is almost directly reflected in what you have seen on a fundamental basis. In other words, the rise in the S&P is reflective of preferred market conditions post financial crisis.

I covered this similarly in my other post:

So essentially, the golden rule is not to be naive in front of long term extreme conditions. The opposing side that follows is likely to be extreme to.

Watch for a full explanation.

Refer to other post for the above:

Maintaining long term short bias into next week.
Read news over weekend.
Mega news week next week especially Wed. Make sure you keep an eye on developments.
Some days with extreme news sentiment, be ready.
Mixed near term sentiment. Heavily awaiting FED news. Short bias remains, but would not be suprised if we RE push higher. Further DCA shorts planned.
Do not try to guess Fed news. If you are holding long term shorts you can still hold, although gains may be further away. IF you are intraday/swing you can exit / lock in profit. You are at early support and it is not showing much for a further down move yet.

To be clear;

1. Traders who are looking short long term will likely need to wait long term.

2. Traders who are shorting at previous local highs can exit for more local gains continually as price falls.

In any case, do not guess what the FED will do or say. It ends bad.
To reiterate further, if you had it short and want to be out now that is OK. Your job would be to RE short on rises.

Otherwise, you're holding long term.
Down goes SPX further. Exit for gains.
You can take very light longs for a bounce Mon.
Oh and looking short on a higher bounce to near resistance. TGT coming soon.
4212 Next area of key scale in support. Would not go heavy at all.
Global indexes falling further as expected and predicted. Scale in light.
Minor drifts occuring. Far higher rebound needed for (light-mid) Re short.
Looking to re enter shorts.
Exit all shorts.

Looking long nearer 4200

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