I have been showing a smaller channel and a larger channel for the past couple of days. The spx is at the bottom of both after try several times to break through the 2841. Today's failure and weak close is yet another red flag for the bulls. I was just speaking to Woody Dorsey, who created the Black Hole and Kill Zone and asked how he would compare this to what took place from October/December 2018. He said this set up is very rare and it will catch many traders standing flat footed.
He has pointed out some days which we could expect a bounce (he will send them out in an update to premium members) but whether we bounce or not, this is going to be a nasty time period for the markets. I asked too write something about trading these black holes, because even when one is looking in the right direction, they could end up watching things pass them by. If the spx blows through 2800, a reaction trade down to 2777 would be on deck. The bulls have to get the spx above 2841 and until they do, the bears are in control.
The real fun hasn't started yet, but we are on the verge. Stay tuned!!
I posted a piece Woody just wrote-that you can read--it is in the link below (Picture is worth a thousands dollars 05/28/19) G-
He has pointed out some days which we could expect a bounce (he will send them out in an update to premium members) but whether we bounce or not, this is going to be a nasty time period for the markets. I asked too write something about trading these black holes, because even when one is looking in the right direction, they could end up watching things pass them by. If the spx blows through 2800, a reaction trade down to 2777 would be on deck. The bulls have to get the spx above 2841 and until they do, the bears are in control.
The real fun hasn't started yet, but we are on the verge. Stay tuned!!
I posted a piece Woody just wrote-that you can read--it is in the link below (Picture is worth a thousands dollars 05/28/19) G-
