This is what real panic selling looks like. SPY just blew through all important Anchored VWAP and moving averages. SPY is clearly in a downtrend and I would not be a buyer anytime soon until the trend termination is confirmed. "A trend is innocent until proven guilty". Don't try to fight this trend or you will get burned. Of course we are getting to extremely oversold conditions and this selloff has expended too much energy to sustain this current trend. My plan is to not take any new positions and manage my current shorts by moving stop losses down as the trade works. Putting on new shorts or taking longs hoping to catch some meat off the bounce seems silly to me in terms of Risk vs Reward.
Next important level to watch is 295. SPY is currently stuck in a HVN therefore a real flush in the morning would need to occur past 295 for continued, sustained selling. Otherwise if we gap up or stay flat, expect some consolidation within this HVN between 301-295.
Next important level to watch is 295. SPY is currently stuck in a HVN therefore a real flush in the morning would need to occur past 295 for continued, sustained selling. Otherwise if we gap up or stay flat, expect some consolidation within this HVN between 301-295.
Comment:
Until today, IWM had been leading the sell off in terms of % loss, however IWM seems to have had some relative strength today. Interestingly, IWM did not break LOD into the close. The next important level to watch is 145 which is been a very strong level of support for the past 2 years. I am expecting a gap down and continued selloff tomorrow.
Comment:
QQQ lead the nosedive today with a -5.01% loss. QQQ had been outperforming these past few days compared to other indexes, however it looks like we are starting to see some real rotation out of tech. No signs the carnage in QQQ is over as there are no real potential support areas until 200-198 (200DMA) or 195 (High volume node).