Regardless of if we're heading to a new high, doing a two step drop like May, or whipsawing like August, everything seems to indicate a bounce tomorrow. No indication which way the market will gap.
The bear scenario takes SPY down to $276 area as soon as next Friday....
No position, just putting up plots for possible scenarios.
I assume an up gap will also get filled quickly, as the market looks very bearish.
I dumped my puts and stayed out of the market today, sort of glad because I thought the market was going to bounce tomorrow and I was going to buy calls before the close.
This may just be a continuation of the bear flag the market was forming yesterday, just basically ignored the afternoon tank which didn't seem to fit the charts anyways.
Probably gonna stay out of the market today and work on other stuff.
So more whipsaw coming.
Not sure we can get a new ATH without AMZN and FB participating. AAPL and GOOGL will hit new ATH though.
I assume a gap up tiomorrow morning though because of the pump and dump algos.
IF it's a real Bear, then betting on a bounce would be suicidal; could sell right down to Dec lows and give a double bottom. Too soon to call!
If the market tanks, I'll stick to just day trading. I made a bunch of money flipping NFLX puts in December. No need to hold options overnight when the market moves that much.