AMEX:SPY   SPDR S&P 500 ETF TRUST
We go the gap fill so now I'm expecting a pennant because it always does.

I think we get another leg down after the pennant unless Powell decides to announce another rate cut before the pennant breaks. Drew it both ways for you guys.

Closed most of my long positions, only one short position. Leaving open the possibility that SPY might hit 294 before tanking, plus I'm thinking about going into the weekend all cash. Never know what's gonna happen during the weekend.
Comment: Not sure which way it's gonna gap tomorrow but I'm guessing it'll throw a doji either way.

I think we'll get volatility next week, staying wit the plan to be mostly cash for the weekend. No point in chasing this rally, last time I checked, we still have a tariff coming.
Comment: Futures plunged 18 pts as soon as it opened....

The only thing is that it gapped down. and as I've said a million times, futures gaps must fill by absolute law. So more than likely the market gaps down tomorrow then goes up to fill he gap then probably back down. Get ready for a whipsaw day tomorrow.

For that matter, get ready for a whipsaw week next week because I expect a pennant to form.
Comment: Futures cycling back up because it left a gap. According to my chart read, the big drop happens Monday morning anyways...
Comment: Futures now hung up 8 pts below close, around where it flatlined before the afternoon pump, appears to have made a diamond formation. Not sure if it's headed up, down or flatlining, Asia seems to be in a dead cat bounce, but not really pumping by any means.
Comment: Note, it might just skip the pennant and head straight down like last October. All cash again in the 401k, and have a few puts I bought yesterday.

Bearish but I'm gonna play it safe...

The big opportunities are when the market gets oversold anyways, that should happen again in 2 weeks or less. No long positions at all until then. Even cashed out the small positions I had.
Comment: Much more of a rebound than I would have expected, but the algos don't care about news or Trump, they gotta do what they're programmed to do. Pattern looks identical to last Friday.

I would suspect that both Asians and Euros will sell Sunday night, expecting a gap down on Monday.

As planned I am going into the weekend almost entirely in cash, kept UAA puts because they suck.
Comment: Futures could go either way tonight, but I'm guessing up for now. Sticking with just the UAA puts, will look for other stuff to short assuming tomorrow is an up day and will present more short opportunities.
Agree; need to see how it closes but we'll know in 3 hours, eh!
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Hmmk; IMO gap UP Monday, run to 2980 by Weds 14th, Full Moon on 15th, throwover; then terrific bounce in September b4 crash. Didn't buy calls but I shorted weekly puts against my Octobers.
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Great Analysis, Thanks much.
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