Well that was an interesting couple of days. Pretty much complete carnage across the board in the tech sector. I've drawn in the two zones of interest for the NAS 100. The first is being tested in the overnight session right now. 'Given the price action I am not overly optimistic that the level will hold . Both the 618 fib and the 200sma are within striking distance below. The 618 and 200sma can act as a magnet for price so I would not be surprised to see a flush down to that zone. If we do see a bounce I will be treating any move into the tan box as a selling opportunity. That could either be a short or a chance to reduce exposure to weaker positions. Powell did absolutely nothing to help the market today and I would go as far to say that there is a deliberate cooling of the market happening right now and perhaps that may be a good thing. The challenge we have currently is that big money is probably sitting on a pile of cash and want better prices. They will patiently wait until the weaker hands (those with smaller accounts), capitulate before they buy back in. Unfortunately capitulation happens after a really ugly down move. The only way to deal with this is to hold through a painful drawn down as everyone panics or get out early. My plan is to build cash from my remaining positions by selling into any rallies and then patiently wait until the flush is over and the trend resumes before putting money back to work.
Comment:
Just completed the measured move. If it doesn't find support here we are looking at a flush to 12000/11850.
Comment:
Double bottomed and has pushed back up into the neutral. Although this is bullish. I recommend tightening stops as tech can still roll over again. Odd increase for bullish continuation above the box.
