After failing to breakout, ES_F SPX futures slashing through support areas, leaving gaps. The declining RSI in my previous post appears to have been a key sign that this move was not going to hold. While the market is oversold near term, the veracity of the move shouldn't be ignored. Breakout failures in the past have not been kind to markets. While there may be some retracement back to these support levels, i'd consider that to be a offloading/shorting opportunity as the market outlook seems grim at the moment. Futures at the moment seem to signal further move to the downside, but we shall see if there's any positive development overnight.
Any small pump has been sold hard. We are going down big time. Any bounce will be shorted
grenadetrade
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@Shortatwill, We'll see. Too early to tell. I figure SPX may get some support around 2500 and retrace back up to these levels, forming a H&S-ish pattern into September. There's going to be some kind of claim of "progress" with the talks with China and some false sense of optimism that may raise markets off of oversold levels. I believe that as we near the 4th qtr, people are going to look at the Fed (no further rate cut), declining global economy, and continued spat among nations (look at even Korea and Japan spat) that may send the markets to rethink. We're also late in the cycle so talk of recession may become a reality given all these factors.