Sending out a brief note prior to my Weekend levels post due to the volatile price action after Jackons Hole. On Fridays my two lower levels were sliced through like butter. The Nas is now below the 21 ema and the 55 ema. Price has also re-entered the bear zone below the 382 Fib. When my levels are ignored it means the market is now trading on pure emotion and technicals can no longer be trusted. During normal price action there is usually at least a brief push and pull between the bulls and bears at key levels. Friday's price action tells me that margin calls are happening, stops are being taken out and the bulls have stepped aside and are waiting for the sellers to run out of capital or start to take profits. The Nasdaq gapped down 130 points tonight and is looking very weak. If you are not short I recommend waiting for price to find a floor before making a move. If you are short already...congratulations your bet may have paid off. I say 'may have' because the overnight session is not finished yet and things can change drastically by the morning. The main area of interest I am focusing on going forward is the ascending trendline in the 12300 area. If price fails to find support there we are likely looking at a retest of the June lows. A black Monday scenario is not out of the question at this point.
