Updates Tuesday 3/31/20

On Tuesday 3/31/20 at 12:28 PM EST, our system had identified a bearish signal for $SPX $NDX $RUT.  This signal confirmed the bearish warning issued by our system on Friday 3/27/20.  The warning is:  Bounce1 is over, and the Down Trend is going to resume.

We posted the following updates for our members throughout the day and into the evening on Tuesday 3/31/20.

Members who follow this signal had the opportunity to capture the drop that started on 3/31.  Members are now alerted to new information in preparation for Friday 4/3.

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Updates 7:46 PM EST - Tuesday 3/31/20

• Signal is at -32:   bearish.  (Maximum bearish is -50). ​
• This signal includes end-of-day data.

At 12:28 PM today, we alerted you that the signal was reading -17, which is much more bearish relative to the reading at the start of the trading day.   

We mentioned that you could start partial entry of your short positions. 

Our system is projecting the following scenario:

• There is a high probability that $VIX $VXN are going to climb back up to retest the highs of 3/18 eventually.   
• While $VIX $VXN climb up, $SPX $NDX $RUT will most likely drop.  There is a high probability that they will drop down to retest the lows of 3/23 eventually.
• This process will take a few days, possibly into early next week.

Below is the updated S/R table.   (Mostly we updated Resistance1 to be at today's highs.)   

There is a good chance that $SPX $NDX $RUT will test Support1 tomorrow Wednesday.

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​Updates 6:32 PM EST - Tuesday 3/31/20

• Signal is at -30:   bearish.  (Maximum bearish is -50). ​
• This signal includes end-of-day data.

The current S/R table is still valid, but we will refine and update it soon after we get some more data from futures.


​Updates 3:25 PM EST - Tuesday 3/31/20

• Signal is at -22: bearish  (Maximum bearish is -50). 
• $VIX $VXN UVXY have found support and are coiling to rise: bearish.
• $SPX $NDX $RUT failed to rise above Resistance1: bearish.
• Market breadth has swung to slightly negative.

A reader had asked for some ETF recommendations for betting against $SPX $NDX $RUT.

They are:  SPXS, SQQQ, TZA.

These are short-term ETFs designed to capture a down segment within a Down Trend.  They are not buy-and-hold instruments for riding the remainder of this Down Trend.   

Please read more about them if you are not already familiar with them.   

Here are some articles to start:
Using SQQQ to bet against $NDX
Three ETFs that rise as small caps fall
Using SPXS to bet against $SPX

Remember: they are like fast cars.   Capable of fast ride, but also big crash.   Do your research and test small if you are new to this.


Updates 12:28 PM EST - Tuesday 3/31/20

• Signal is at -17: bearish  (Maximum bearish is -50). 
• $VIX $VXN UVXY are coiling to rise: bearish.
• $SPX $NDX $RUT failed to rise above Resistance1: bearish.
• Market breadth is still hovering at neutral.

If you want to start entering short, keep your initial entries small with tight stops.

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There is now a significant new signal after hours Thursday 4/2/20.  

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