Major MAJOR support broken on the SP 500. That is a confirmation of the downtrend in a big way. The VIX already confirmed the top and now the SP 500 has proved it.
We should be seeing a bounce once the VIX daily stochs get up over 80. The bounce should be a test of broken support.
Another busy day for me... I will try to comment when I can. It was my daughter's first day of school, so I am just getting back to my computer.
How to Transform Ourselves: As People, As Traders
22 hours ago
9 comments:
A trading range break usually confirms a new trend.
This market is exceptionally weak today. We may get capitulation sooner rather than later.
XLF is falling on lighter volume at key support. However, this could easily be one of those situations where the price continues to fall because no buyers will commit with the market in turmoil. That is a bearish setup and can trigger a volume follow-through confirmation.
If you look at my 30-min chart, you will see a measured move off the recent top. But that can extend - it does not have to be symmetric.
Light volume on some falling patterns is a good thing for longs. But I don't see anything positive about this one.
XLF is at its 5 day MA. This is its proving ground.
I'm debating IWM calls.
All that work on the SP 500 over a period of weeks is cancelled in a day. Amazing.
And screw calls. IWM broke 72 and the VIX is wildly dangerous right now for longs.
looks like someone may be trying to put a floor under XLF
Sold my XLF puts. I will look to short again soon.
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