The market had to bounce because it got oversold, but the bounce won't last long, there's no MFI divergence. I'm expecting the market to do the same as it did the last time Trump had a China fit, I even overlayed the arrows. (Someone's gotta teach me how to overlay candlesticks, would be interesting to see an intraday overlay of the drop.) So a small bounce on Monday and tank again on Tuesday.
This assume no further news, everything changes depending on what Trump, Powell, and China do next week.
In any case, it's gonna whipsaw here, so watch your indicators. My preference is 2 hrs for indices and 3 hrs for futures, but I also look at 1 hr for both.
This assume no further news, everything changes depending on what Trump, Powell, and China do next week.
In any case, it's gonna whipsaw here, so watch your indicators. My preference is 2 hrs for indices and 3 hrs for futures, but I also look at 1 hr for both.
Comment:
Note: MFI on daily chart (both $SPX and SPY) is oversold for the first time since the Christmas tank. If for whatever reason the market gaps down big on Monday, I'm buying SPY calls like crazy.
Comment:
Selloff accelerated and hit my first target. Expecting a bounce here then another tank, but with the huge red bar and no capitulation, I have to leave open the possibility that it does the same thing as Feb 2017 where it gaps down huge the next day and bounces. Still holding SMSI and BGS long, that's about it until tomorrow.
Comment:
Not exactly how imagined we'd get here, but the market is set up for the next leg down. There's a possibility that it might gap up tomorrow though.... no long positions for now....