On the downside we have some protection at 12610. Whether we do or don't test either , if it finds support here, this could indicate a strong reversal. However I think that to be unlikely given the valuation of the market today and the necessity of a correction to maintain reasonable valuations in the tech sector. Unfortunately, the rest of the market will probably get caught in the crossfire.
I am also watching the SPX for a probable normal dip along its trading trendline. Looking for some possible short plays there.
Looking for a possible bear PCS on INTC this week as it tests previous resistance line for support in pattern...
Another possible bear PCS on AGI this week or early next as it shows a in an overall downward trend while showing overbought on the . Will probably look for a crossover before entering into the position. This will be especially effective if it tests and fails the downward trendline this or next week.
Also looking for entry on a PCS for BK after failing $47 and a crossover in the and one possibly forming on the .
Looking for a similar play on ED after possibly failing resistance for 3rd time while showing overbought in with a crossover.
Everything of course seems to be dependent on the TNX so keep an eye out for more panic selling with rising rates.
If there is significant move up in the next few days that takes it beyond 13,600 then there is hope of recovering bullish momentum, but if that does not happen this index is likely to test the bottom of this channel at 12,000
Be very carefull
Even more confirmation of down trend today, likely to see one more jump to about 13,100 and if there is no miracle to ignite a new rally, 12,000 is looking even more realistic.
If anyone wonders why we see such a drop for so long, it is likely that large investors and institutions are selling their long positions and it takes weeks or even months to do so.
Any bullish push upwards is sold in to as fast as they come.
Be very careful buying this dip until you see confirmation that this dip is actually over.