Not pretty. Out in the a.m., will be looking for opportunities throughout the day, but no sign of a turn just now. Did get fooled by a short-lived turn in the Trin -- note to self, wait for more than a bar's worth of confirmation! There is certainly plenty of room to run in both directions.
8:25AM PST: Downtrend line broken by a hair, VIX peeling back slightly. Also, we hit and made a slight bounce off the connected Friday low points. It's something to watch, not trade yet...
8:40AM PST: OK, that could have been "it" -- don't forget that any longs in this market are highly risky! Unless institutions come in, the temptation for traders will be to sell it down. I'd now wait for a higher hi/low pattern to develop. Also, see how price behaves at the VWAP.
9:25AM PST: Possible resistive volume building at the pivot. What does this mean? When normalized volume (the red/green thin dotted line on my price axis) spikes and tapers way above typical levels, it often precedes either a pause -or- reversal in price action. Also bear in mind we are at the top of the downward trend channel from the Tuesday highs. Will we break or bust?
11:30AM PST: Last hour risk (or opportunity?). Tomorrow is options expiration. Transportation and Consumer Discretionary are the day's winners because... Oil is down over -5%. Chop Chop.
o Quant Edges - Scary Pictures
12:00PM PST: Fourth try to break the down channel. The more times we try, the more likely success. Still below pivot as most daily indicators have gone positive. Google coming up at the close.
12:10PM PST: Downtrend and pivot broken by a hair... Classic 'W' bottom, or a prelude to Quant Edge's 'Scary Pictures'? No way to know for a day or two. Right now I'll assume the former, but trail stops along the way.
12:45PM PST: The five day MAs should be viewed as possible resistance today/tomorrow (just under SPY $96). Below that is /yesterday's pre-fall peak (SPY $94.70). Also, there may be a desire to reduce risk ahead of GOOG unless it has already been leaked. Think I'm kidding? No, I haven't heard any rumors. However, the whisper number is reported at $4.75 versus the $4.08 consensus.
CLOSE: Note that daily momentum is showing a positive divergence and that volume today was much stronger than during the last two days of losses.
Never Investment Advice
Did you like this article?
Submitted By 
's
