Scalp the fear @ 289 -> Sell the greed @ 297
After taking a look at SPY, I'm convinced we're not going to see any kind of real bounce until 288-289. Lots of TL and support converge there and the TL from the Dec /Jun bottoms will absolutely be tested. The bullish shark remains valid all the way down to those levels and the fib retraces from there line up much better w/ current levels of resistance compared to Friday's low. I think bulls will see the eventuality of a trip to 289, and save their ammo for these levels. Expect futures to keep bleeding until then.
My PT for SPY in the intermediate term is 266-ish (wave C of expanded flat as outlined in my Bloody August post). However, we'll get some massive face-ripping short covering rallies on the way down tho, and I believe the bullish shark bounce from 289-297 will be one of them. The next one will probably be from the 279-280 levels.
I expect this shark to turn into a bearish 5-0 next week and a rejection out of that .500-.618 retrace area (red box) would confirm it... but we'll cross that bridge when we get there.
My PT for SPY in the intermediate term is 266-ish (wave C of expanded flat as outlined in my Bloody August post). However, we'll get some massive face-ripping short covering rallies on the way down tho, and I believe the bullish shark bounce from 289-297 will be one of them. The next one will probably be from the 279-280 levels.
I expect this shark to turn into a bearish 5-0 next week and a rejection out of that .500-.618 retrace area (red box) would confirm it... but we'll cross that bridge when we get there.
Somehow i get the feeling the sick twisted bastards in financial media are gonna run headlines like "trade war escalation raises hope for Fed rate cut" to justify a bounce this wk...