Will Tomorrow be the Worst Market Drop of the Year?
SOURCE FOR EVERYTHING IN THIS POST IS FROM https://www.spytrader.net/
Will Tomorrow be the Worst Market Drop of the Year?
Today I have been asking myself a question all day. Will tomorrow be the worst market drop of the year? We have seen the weakness in the S&P 500 over the last three weeks, and we just had our first drop of over 1% two days ago after 109 days of not seeing one. We posted a blog post that morning and it was also sent in an email to our subscribers at 10:19 on that morning. Here is what I wrote. https://www.spytrader.net/single-post/2017/03/21/Will-The-SP-500-Get-a-1-Drop-This-Week
Now lets look closer at tomorrow
I done some research and tomorrow shows since 1957 the S&P 500 has dropped on March 24th 54% of the time. Then I looked at the worst single day drop in the S&P for each of the last 60 years, the date March 24th came up twice once in 1975 with a -2.36% drop and the other in 2003 with a -3.52% drop. Now combine this with the weakness we have been seeing in the S&P and the vix getting stronger. From past history it looks like tomorrow could be a scary day for the bulls. My position is cash for tomorrow.
In the chart below you can see where a drop of -2.36% would take the S&P down to 2289 and a drop of -3.52 would take it down to 2262.
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I have been looking at https://www.spytrader.net website very interesting
I hope this plays out because I got long VXX tuesday afternoon at 15.50 by way of a credit spread. Another leg up from 17 (todays closing) and I can close out early instead of waiting for the options to expire.
This post has been ranked within the top 50 most undervalued posts in the first half of Mar 24. We estimate that this post is undervalued by $2.83 as compared to a scenario in which every voter had an equal say.
See the full rankings and details in The Daily Tribune: Mar 24 - Part I. You can also read about some of our methodology, data analysis and technical details in our initial post.
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Interesting analysis. I too am thinking that either yesterday/today was an inflection point for the SPY. We are either continuing higher or your analysis of a lower market is in store. Personally, I would like it to fall as I have some VIX options that are out of the money and it will create a great entry point to go long US stocks.
Lets see what happens!
This is what SPYTRADER sent to my email at 10:19 , 50 min after the market opened 2 days ago. I am a subscriber and their blog post come to my email when they post it. https://www.spytrader.net/single-post/2017/03/21/Will-The-SP-500-Get-a-1-Drop-This-Week
hey, im waiting for the market to crash, lets hope your right!!!!
Ok the market opens in 5 minutes. Let see what happens!
I see it's not going down yet but there is a lot of time left.