Our short-term message to you yesterday was that $SPX $NDX SPY QQQ TQQQ were going to drop down to key support zones first, before they can find enough buyers for the start of a Bounce.
And indeed they dropped. And today's drop is unlikely to be fully done yet. More about that below.
Our long-term message to you was this. Beware of this Volatile Market turning into a major Down Trend.
We showed you this chart a couple of weeks ago. This is $SPX hourly chart in late December 2015. Note the candle pattern that formed at the arrow prior to the crash.
Below is the current $SPX hourly chart. Observe how the candle patterns are quite similar to what $SPX looks like in the above chart from 2015.
We are likely to see a short-term Bounce. But what happens after that may not be so great for traders with a bullish bias, as well as the majority of long-term investors.
The rest of this article covers:
Table of support and resistance levels
Updates from market internals
Planning your trades
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