The selloff seems over for now, but this remains dangerous. I think SPY can gain 1% by the end of the week, so I am long trading Friday expiration calls.
• in the 4 hr suggests a reversal;
• Channel breakdown means that the market could try to go back in;
• Possible Head & Shoulder, the right shoulder is still missing.
• Market flattening creating at the same time a possible Head & Shoulder pattern, so we may have a further situation;
• Channel breakdown could trigger a selloff if it fails to go back up;
• The rise in interest rate pressures the growth stocks (small caps, tech).
To add to the idea:
VXX could make a H&S pattern and SPY an inversed H&S.
We gonna see if it works out.